The ASX Today

With many overseas indices just treading water overnight, the ASX is indicating it too is more than likely to do the same this morning. 

ASX SPI Futures finished flat at 7.30am AEST.

US equities treaded water before dropping below the surface for the most part. The Dow and S&P 500 are down around 0.30-0.35 per cent. There's been talk Trump's tax plan will be a ‘phase in' policy over a period of five years, which would reduce its immediate effectiveness. 

Our miners look likely to deliver a mixed performance, and it will largely depend on which driver they run with. That's to say, the US dollar has fallen, but performances last night across spot prices and overseas materials sectors weren't too promising.

KEY POINTS

• US dollar cracks lower, US equities tread water
• Gold finds buyers again and oil continues upturn
• Minor economic data around home sales and private sector credit, traders will focus on consumer outcomes 
• Harvey Norman goes ex-dividend, Woolworths reports, consumer sector in the spotlight today after lacklustre US performance overnight

Lacking the tech and tax catalysts of the US, the ASX is missing firepower to propel higher. It's without even risk today too, the biggest economic items released being new home sales and private sector credit. This could garner attention considering the softening property market.  

The US dollar has lost steam overnight by the measure of around 0.4 per cent. The British sterling was the star performer, rising 0.6 per cent as traders prepare for the Bank of England meeting.

And the Australian dollar has cracked below US76c over the last 24 hours— it's buying US76.82c this morning.

Oil and commodities are mostly up day-on-day. Oil sentiment has continued to grow as the market looks to be moving in OPEC's favour. Brent crude is up 0.74 per cent to $US60.88 while WTI is up 0.41 per cent to $US54.12.

The biggest mover most worthy of a mention is iron ore — it's fallen 2.2 per cent overnight to $US58.75. In fact, Dalian iron ore, steel and coking coal all closed lower.

But our big producers and miners were mixed in overseas trade, and most base metals fell again on the London Metals Exchange. Today we will receive China data: manufacturing and non-manufacturing PMIs for October, which alongside a falling US dollar, might make a stronger case for base metals and iron ore. 

Word on the street is the 10-year US treasury rate is the one to watch right now, and it has recently seen a pullback. It's currently at 2.48 per cent. Strategists think the critical level here is 2.35 per cent. It's quite dependent on US Federal Reserve chair election discussions, and if it cracks, stocks, the US dollar and gold will all come under its spell.

On that note, gold has already risen 0.31 per cent overnight and has returned to last week's level of $US1276 an ounce.