JASPER’S MARKET SQUAWK 06-09-2023

<h2>Risk Off Prevails as Data Disappoints</h2>
<p>Global markets were a sea of red as major economies continued to report disappointing services PMI and corporate debt issuance picked up. The dollar reached its highest since March, with crude rising after production cuts were extended.</p>
<p><img decoding="async" fetchpriority="high" class="alignnone wp-image-25442 size-full" src="https://www.keytomarkets.com/blog/wp-content/uploads/2023/09/Untitled-design-84.png" alt="" width="1921" height="916" srcset="https://www.keytomarkets.com/blog/wp-content/uploads/2023/09/Untitled-design-84.png 1921w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/09/Untitled-design-84-300×143.png 300w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/09/Untitled-design-84-1024×488.png 1024w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/09/Untitled-design-84-768×366.png 768w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/09/Untitled-design-84-1536×732.png 1536w" sizes="(max-width: 1921px) 100vw, 1921px" /><em><strong>Chart: XAUUSD</strong></em></p>
<h2>Key Factors for Today</h2>
<ul>
<li>Debt Issuance Sends Gold Lower</li>
<li>Eurozone Services PMI falls, EURUSD to $1.07</li>
<li>Aussie Tumbles Following Consectuvie RBA Hold</li>
<li>Yen to Fresh Lows Despite Japan Considering Intervention</li>
<li>Saudi Arabia and Russia Extend Production Cuts</li>
</ul>
<h2>Debt Issuance Bolsters Yields, Pushes Gold Lower</h2>
<p>Around 40 businesses in the US issued roughly $36B in debt, which pushed yields on treasuries higher and supported the dollar. As a result, gold fell for a second session this week to reach a low of $1925 an ounce, leaving behind resistance at $1935 and exposing support at $1915.</p>
<h2>Eurozone Services PMI Falls, EURUSD to $1.07</h2>
<p>Final Eurozone Services PMI was revised lower to 47.9 from 48.3 preliminary, confirming the first contraction in 8 months, with the composite PMI falling to the weakest since November 2020. Prices also fell to a June low, bringing $1.07 back into the spotlight after Tuesday’s 0.67% loss. If bulls fail to reclaim $1.0767, $1.0667 may be the next level of short-term rejection. Meanwhile, ECB official Joachim Nagel (Germany) said that the Euro Area had not reached the inflation target and reiterated a data-dependent rate approach.</p>
<h2>Aussie Tumbles 1.30% After 3rd RBA Hold</h2>
<p>The RBA paused for a third time in a row, reiterating that further hiking might be necessary and noted uncertainty around the lag in the effects of monetary policy. The bank noted that inflation had passed its peak but was too high and would remain too high for some time. From an open of $0.6461, AUD/USD penetrated 64 cents down to $0.6378, a November low, with the next significant support at the round support of $0.63.</p>
<h2>Yen to Fresh Lows, But Japan Could Intervene</h2>
<p>The yen got a pop but subsequently faded after the top currency official for the Japanese government, Masato Kanda, said that he wouldn’t rule out any options in dealing with the weakening of the currency. AT a fresh November high, USD/JPY bulls could target ¥149 next after a 0.89% gain Tuesday unless ¥146.43 succumbs to increasing pressure.</p>
<h2>Saudi Arabia and Russia Boost Oil Prices Higher</h2>
<p>Both crude-producing nations confirmed extending their current production curbs to the end of the year. Saudi Arabia would maintain its 1M bbl/day reduction, while Russia could currently keep the 500K bbl/day in place. The spike to $88 a barrel was not sustained, though, with WTI closing 0.95% up at $86.70. Losing $85/bbl may induce additional shorts.</p>
<h2>On The Docket</h2>
<ul>
<li>DE Factory Orders</li>
<li>S&amp;P Global/CIPS Construction PMI</li>
<li>US Trade Balance</li>
<li>Fed Collins Speech</li>
<li>BOE MPC Treasury Committee Hearings</li>
<li>S&amp;P Global Services, Composite PMIs</li>
<li>BOC Interest Rate Decision</li>
<li>ISM Services, Employment</li>
<li>Fed Logal Speech</li>
<li>API Crude Oil Stock Change</li>
<li>BOJ Nakagawa Speech</li>
<li>CN Trade Balance</li>
<li>RBA Gov Lowe Speech</li>
</ul>
<h2>FX 1-Day Relative Performance (USD)</h2>
<ul>
<li>Aussie and Kiwi higher by 0.18% each</li>
<li>Euro 0.12% higher, Pound also 0.09% up</li>
<li>Yen up by 0.33%, Franc lags at 0.08%</li>
<li>Canadian dollar higher by mere 0.04%</li>
<li>Gold up by mere 0.03%, Silver at +0.20%</li>
<li>Crude and Brent both up by 0.10%</li>
<li>Natural gas 0.35% lower</li>
</ul>
<p>The post <a rel="nofollow" href="https://www.keytomarkets.com/blog/analysis/jaspers-market-squawk-06-09-2023-25438/">JASPER’S MARKET SQUAWK 06-09-2023</a> appeared first on <a rel="nofollow" href="https://www.keytomarkets.com/blog">Key To Markets Blog</a>.</p>