Aussie dollar rallies after RBA

"The emotional burden of trading is substantial; on any given day, I could lose millions of dollars. If you personalize these losses, you can't trade." - BRUCE KOVNER 

 

 

HEADLINES

 

 

• Aussie rallies on improved risk appetite
• AUD/USD: Upbeat tone by the RBA to underpin the aussie – ING
• Gold futures mark highest finish in over a week
• Oil Inventories Fall by 3.1M Barrels Last Week: API
• Wall Street closes higher with Nasdaq boosted by tech rally

 

 

FOREX

 

 

Aussie rallies on improved risk appetite

 

Easing Omicron COVID-19 variant worries and a timely booster shot of Chinese stimulus helped lift riskier currencies on Tuesday with the Australian dollar leading the charge.

Global stock markets and oil gained, leaving traders to dump safe-haven currencies and bonds, as markets took confidence from reports in South Africa earlier in the week saying that Omicron cases there had only shown mild symptoms.

 

AUD/USD: Upbeat tone by the RBA to underpin the aussie – ING

 

“The rate announcement saw no changes to the main policy tools. However, policymakers characterised the Omicron variant as a ‘source of uncertainty’ that ‘is not expected to derail the recovery’ and stressed instead a strong recovery in the jobs market. This is ultimately allowing markets to speculate that the RBA may follow the example of the Bank of Canada and abruptly end asset purchases (rather than simply tapering again) at the February meeting.”

“With still a lot of short positions to be unwound, this is a notion that can continue to offer support to the Australian dollar in the coming weeks.”

 

 

COMMODITIES

 

 

Gold futures mark highest finish in over a week

 

Gold futures settled higher on Tuesday, with prices for the most-active contract at their highest since Nov. 26. Recent spikes in gold and silver prices "invited a little profit-taking among existing owners," said Adrian Ash, director of research at BullionVault, but "new buyers continue to enter the precious metals markets, taking a position in physical bullion ahead of the New Year."

 

 

Oil Inventories Fall by 3.1M Barrels Last Week: API

 

 

U.S. crude stockpiles fell more than expected last week, but product inventories recorded sizeable gains at a time when many are reassessing the risk of the Omicron Covid-19 variant to energy demand. U.S. crude inventories fell by 3.1 million barrels for the week ended Nov. 30. That compared with a draw of 747,000 barrels reported by the API for the previous week. Economists were expecting a draw of about 2.1 million barrels.

 

 

STOCKS

 

 

Wall Street closes higher with Nasdaq boosted by tech rally

 

Wall Street's main indexes finished Tuesday's session with strong gains as investors shook off some anxiety about the latest coronavirus variant and investors boosted Nasdaq by piling into technology stocks. Intel's announcement of plans to take its self-driving car unit Mobileye public in the United States next year pushed his shares to a 3% gain and cheered chip investors across the board. Investors were also reassured by positive news about the Omicron variant of COVID-19, which had helped send them fleeing from risky bets last week.

 

 

CHART

 

 

Euro / US dollar – 4-Hour Candlesticks

Source: GKFX Prime Metatrader 4

EUR/USD has rebounded off the spike low formed on November 30. A break above the downtrend line connecting the highs could begin a much larger rally. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

SOURCE

 

 

 

https://www.fxstreet.com/economic-calendar
https://www.reuters.com/markets/europe/wall-street-closes-higher-with-nasdaq-boosted-by-tech-rally-2021-12-07/
https://www.investing.com/news/commodities-news/oil-inventories-fall-by-31m-barrels-last-week-api-2703389
https://invst.ly/wtucr
https://www.fxstreet.com/news/aud-usd-upbeat-tone-by-the-rba-to-underpin-the-aussie-ing-202112070804
https://www.investing.com/news/economy/haven-currencies-pressured-by-hopes-omicron-is-mild-2702026