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Gold jumps, while ASX200 tanks in the last session of 2019

jeffriess
December 31, 2019
by Joseph Jeffriess, Market Analyst

Mixed trade on the last day of 2019.

U.S stocks and European shares started the week in the red which set up a weaker lead for the ASX200 this morning, what we’ve seen so far today has been a route on the local market with price falling well beyond what you would think is normal based on those leads. The ASX200 has a 1.78% deficit at the close, has this been overextended profit-taking? Today’s Chinese manufacturing PMI data came around expected not offering up any negative surprises. Communication Services was the hardest hit sector dropping 3.07% closely followed by Information Technology down 3.6%.

Looking at today daily chart you can see how aggressive the move has been since open.

FX majors have remained lower to the JPY with falls continuing after yesterday’s declines. The USDJPy shed 0.49% yesterday and is down a further 0.17% today. Otherwise, risk maintains gains to safe havens with gains being seen to the USD from the AUD, EUR and GBP. The AUDUSD performing best at this stage hitting new weekly highs at .7007.

Gold has seen some solid interest today gaining 0.56%, buyers also breaking the resistance and the 3/10 high. Next test 1532.60, if buyers can maintain their current momentum.

The US30 is trading higher in today’s out of hours session but will we see a continuation lower confirming a new correction or a starting point of a new early low?

The first key data to start 2020 is US CB Consumer Confidence, which will be released at 02:00 am AEDT tonight.

 

We wish our clients and everyone a happy and safe New Years, and a successful 2020. 

All times are AEST.