Equities lower but no flight to US dollar safety, commodities to benefit, Aus unemployment 11:30, ASX futures flat

Some interesting market dynamics emerged last night - while minor falls in US equities generally precipitates buying in the US dollar, the opposite happened overnight. Today's first chart shows a sharp move in the US dollar index (in black) down through a zone that was previously providing support to keep it out of the circled areas. Now, however, it's a different story, with poor US retail sales data pushing out bets of a US interest rate hike and igniting stop positions that I've previously talked about being latent in this market.

Today's second chart shows five instruments that are benefiting from this weaker US dollar, which has strengthened since the beginning of October: Aussie dollar (AUDUSD), Spot Gold (XAUUSD), Spot Silver (XAGUSD), Canadian Dollar (CADUSD) and Kiwi (NZDUSD). All instruments are available to trade on the Rivkin Trader platform.

You'll notice today that the ASX 200 is set to open flat and this is largely explained by the positive effect that a weaker US dollar will have on commodity markets, with gains in gold and silver, and some small gains in copper and iron ore.

Today's last chart shows the ASX 200 index CFD, which is reflecting healthy levels at around 5,200 and will be waiting for today's Australian employment figures, which will print at 11:30am Sydney time. US CPI figures will be released at 11:30pm tonight, so there's a lot of data to get through before the ASX 200 decides whether it will resume its October rally or the US S&P 500 decides whether it will move higher than 2,000 again.

Source: Rivkin, Saxo Bank

To view the Rivkin economic calendar and Global Markets matrix, members can click here.

This article was written by Scott Schuberg, CEO of Rivkin Securities Pty Ltd. Enquiries can be made via info@rivkin.com.au or by phoning +612 8302 3600.

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