MARKET DEVELOPMENT – AUD/USD Drops, Crude Oil Prices Choppy on OPEC
DailyFX 2019 FX Trading Forecasts
Crude Oil: As to be expected, it has been a volatile session thus far for crude oil futures amid the bi-annual OPEC meeting. Brent crude futures had hit highs of $63.84 early in the European session following reports that OPEC may consider deeper cuts of 500kbpd. However, deeper cuts had later been rebuffed by Saudi official sources who noted that Saudi Arabia are not advocating deeper cuts. As is usually the case, oil prices are likely to swing back and forth amid the flurry of OPEC source reports. (full report)
*3-month correlation with Brent crude oil
AUD: The RBA’s unease over subdued household consumption, which had been highlighted in the Q3 GDP report, looks to have spilled into Q4 with the October retail sales dropping to 0%, missing expectations of 0.3%. Consequently, the Australian Dollar is among the underperformers in the G10 complex and thus looks to make a retest of 0.68 with a move lower in AUD/NZD also likely to be favoured.
Source: RBA
Source: DailyFX, Refinitiv
Economic Calendar (5/12/19)
Source: DailyFX,
WHAT’S DRIVING MARKETS TODAY
- “Crude Oil Volatility Soars amid OPEC Risk, Investors Bet on Oil Price Breakout” by Justin McQueen, Market Analyst
- “Gold Price: Key Chart Levels in Focus - XAU/USD Technical Forecast” by Nick Cawley, Market Analyst
- “DAX 30 & CAC 40 Technical Outlook: Appears to Have Only Been a Pullback” by Paul Robinson, Currency Strategist
--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.mcqueen@ig.com
Follow Justin on Twitter @JMcQueenFX
