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Heavy Metal Rules the World; The Aussies Make a Comeback

Published 23/11/2016, 11:11

Today's Highlights

Heavy Metal Rules the World

The Aussies Make a Comeback

The Underdog Events Today

Please note: All data, figures & graphs are valid as of November 23rd. All trading carries risk. Only risk capital you're prepared to lose.

Market Overview

The Trump rally really has carried us much further than anybody could have expected. The Dow Jones and S&P500 have found themselves even higher highs and closed yesterday near the nice and neat round numbers of 19,000 and 2,200 respectively.

Today's movements are being driven largely by the metals, some of which are up more than 2% this week.

Commodities Chart

Meanwhile Down Under

It seems the good investors in Australia are all listening to metal this morning. Both the Aus200 and the AUD/USD are rising sharply this morning despite some horrible construction data.

The Aussie dollar was kicked pretty hard by the Donald Trump Dollar Surge and fell way below its comfort zone. Remember the range we discussed that was broken last week? Take a look now. Looks like it may try to re-enter that range...

AUD/USD Daily Chart

Certainly, if their main exports continue to rise in value it can only be good for their economy and their upside down markets. ;)

The Official Main Events

The two main events today are both likely to be duds. However, we will keep a close eye on both. Remember, the definition of a surprise is that nobody expects it to happen. So it pays to pay attention.

First, is the UK Budget Forecast delivered by Philip Hammond. The newly appointed Chancellor of the Exchequer, also known as Spreadsheet Phil, is not known to be particularly flashy or exciting and is largely expected to deliver a safe and conservative report today.

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The second main non-event today is the FOMC meeting minutes from the US Fed's previous meeting. With the market currently pricing in a 100% chance of a rate hike there's very little they can say that could be considered news.

The Underdog Events

These actually do have potential for a large impact.

In the morning: PMI numbers from Europe and a German Bond Auction. Despite what's happening with US treasuries, many German Bonds still have negative yields.

In the Afternoon: US PMI numbers, followed by New Home Sales and Consumer Sentiment. After that we'll get the weekly Crude Oil inventories, which is always fun, especially given the volatility in the oil markets we've been seeing lately.

Disclaimer: This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation. Past performance is not an indication of future results. All trading carries risk. Only risk capital you're prepared to lose.

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