Daily Markets Broadcast 2018-12-04

Daily Markets Broadcast

2018-12-04

Wall Street’s G-20 rally stalls

US indices closed higher yesterday, but well of the intra-day peaks. White House economic adviser Kudlow clarified that the 90-day truce starts on January 1. RBA is expected to keep rates at record lows at today’s meeting.

US30USD Daily Chart

Source: OANDA fxTrade

• Upside momentum in the US30 index waned as the day progressed yesterday. US futures are in the red this morning, possibly the first down-day in seven days
• The index remains above the 100- and 55-day moving averages at 25,615 and at 25,582, respectively
• Sentiment indicators populate the data calendar today in the form of the ISM-NY business conditions index and the IBD/TIPP economic optimism index. FOMC member Williams is also scheduled to speak.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index rose for the first time in three days yesterday amid better sentiment on Wall Street and better news on the Italian budget situation
• The index reached its highest level in three weeks. The 55-day moving average at 11,659 still acts as the first possible resistance point
• Reports suggest Italy is preparing to accept new lower budget deficit targets in the range of 1.9-2.0%. European PMIs were mixed yesterday. Notably, Italy’s fell to a near 4-year low.

AU200AUD Daily Chart

Source: OANDA fxTrade

• The Australia200 index looks set to advance for a second day ahead of the Reserve Bank of Australia’s rate meeting later today
• The 61.8% Fibonacci retracement of the November 12-21 drop is at 5,816. The 55-day moving average is at 5,887
• RBA is expected to keep rates at record lows at today’s meeting. The accompanying statement will be scrutinized for any change in tone or language from prior ones.

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