Nasdaq 100 (USNAS100.I) : Friday’s session saw notable contrast in the closing levels for the tech-heavy Nasdaq 100, which closed near the lows of the day. The S&P 500 generally clawed back of the lost territory from early in the session.
The Nasdaq 100 technicals look more precarious as the attempt at new local highs above 11,540 was beaten back in Friday’s session. Both indices are settled near the key 21-day and 55-day moving averages (11,240 for Nasdaq-100 and 3,340 for the S&P500). The shorter moving average is crossing below the longer one in today’s pre-market.
AUD/USD - an RBA meeting on Monday night is not generating widespread anticipation of any policy shift. There had been some noise recently on the prospects of a small additional cut to the current 0.25% policy rate. Governor Lowe has said that he would like the Australian dollar lower. However, he didn’t seem to indicate any urgency to do anything about it. Some commodity prices prominent in Australia’s export mix have suffered weakness recently. The AUD/USD has held above 0.7000 and is now likely to reach the key 0.7200-50 area. With a rally and close above this level indicate that the downside threat has likely been averted for now.
WTI Crude Oil
WTI Crude Oil (OILUSNOV20) - have bounced following the weekly drop since June as the market focus on an apparent improvement in the health of Donald Trump than the rising supply from Libya and concerns about the sustained recovery in consumption. The current range-bound trading behavior reveals a market that remains torn between short-term weakness against the expectations for growth, the timing of which, however, continues to be delayed. The essential area of resistance in Brent remains the band from $42.5/b to $43.25/b. The support continues to be found towards $39/b.
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