6 things Australian traders will be talking about this morning

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Good morning.

To the scoreboard:

Dow: 23,848.42 -9.29 (-0.04%)
S&P 500: 2,605.00 -7.62 (-0.29%)
AUD/USD: 0.7663 -0.0018 (-0.23%)
ASX SPI futures (June contract): 5,772 +7

1. US stocks had a choppy session overnight as the S&P500 drifted lower but held above its 200-day moving average, which has proven to be the key support level in recent days. But there were sharper falls in the NASDAQ as US tech stocks remain under pressure. The wash-up is that ASX futures traders are pricing the local index to edge higher this morning.

2. In currencies, the USD rally gained momentum and there was a sharp rotation out of the Japanese yen for the second straight day. The greenback posted strong gains against the euro amid a weakening Eurozone growth outlook, as US Q4 GDP growth was revised higher on strong consumer spending. The Aussie lost more ground to the USD but rose against most major currencies overnight.

3. With markets still cautious, traders have been favouring bonds over gold and the yen as a safe haven over the last two days. US 10-year bond yields remained below 2.8% overnight while gold’s recent rally ran out of steam, as prices for the precious metal dipped by 1.4%.


4. Iron ore goes bearish: Spot prices slid by another 3%, marking a 20% decline from recent highs which leaves it in a technical bear market. The price action doesn’t bode well for the big Aussie miners today after global mining stocks fell overnight.

5. In cryptos, bitcoin was the only major coin in the green last night but a short time ago this morning it remained stuck below $US8,000. And while volumes are declining on major exchanges there are still plenty of believers. A case in point — this founder of a Silicon Valley crypto company told Business Insider the market will boom later this year when institutional money comes off the sidelines.

6. Heading into the Easter break, it’s a quiet day of data in Australia. Traders in the Asian timezone will be awaiting this week’s key data point globally, with the release of US PCE inflation data for February. The consensus forecast is for annual core inflation growth of 1.5%.

Have a great Easter.