The ASX Today
The ASX is expected to open slightly lower today, following a mixed day's trading on Wall Street and losses in Europe.
The ASX is expected to open slightly lower today, following a mixed day's trading on Wall Street.
ASX SPI 200 futures were down 12 points, or 0.2 per cent, to 5989.
At time of writing, the Dow Jones Industrial Average was up 41 points, or 0.16 per cent, to 26,152.12 and the S&P 500 index was down 0.06 per cent to 2837.54.
- The ASX is expected to open lower after a mixed day's trading on Wall Street.
- The US dollar was weaker across the major currencies after US Treasury Secretary Steven Mnuchin said a weaker dollar was better for trade.
- Detailed labour force and employment data for December is released today.
- Oil was stronger following reports of a record 10 weeks of lower inventories.
- Gold was up 1.25 per cent, to $US1357.60 an ounce.
The US Energy Information Administration reported crude inventories fell for a record 10 weeks straight. Brent crude rose by 1.3 per cent to $US70.89 a barrel and WTI crude was up 2.3 per cent to $US65.99 a barrel
Gold added $US17.10 to be up 1.25 per cent, at $US1357.60 an ounce.
The Australian dollar was trading at US80.73c at time of writing, after beginning the day at US80.10c. This came after US Treasury Secretary Steven Mnuchin welcomed a weaker US dollar, saying it would help boost US exports. The euro rose to $US1.24, a high not seen since the Brexit vote.
AxiTrader chief market strategist Greg McKenna said the Reserve Bank of Australia will be watching the US dollar closely ahead of the bank's first interest rate decision of the year.
“The RBA has warned about the appreciation of the Australian dollar potentially complicating the recovery (of the Australian economy),” he said.
Local investors might be keeping an eye on Australia's major exporters today, as traders may react to a higher Australian dollar.
BHP and Rio Tinto were both weaker in London trading overnight, shedding 0.91 per cent and 0.57 per cent, respectively.
On the London Metals Exchange, however, most commodities saw large gains, with copper up 3.3 per cent to $US7111 a tonne and nickel up 5.7 per cent to $US13,539.50 a tonne.
Detailed labour force and employment data for December is released today, while the European Central Bank meets to decide monetary policy.
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