JASPER’S MARKET SQUAWK 19-09-2023

<h2>Investors Cautious Ahead of FOMC</h2>
<p>Markets remained cautious ahead of a barrage of central bank decisions during light trading on Monday despite the simultaneous Detroit strike continuing to take its toll. Meanwhile, the prospect of a government shutdown by the end of the month looms nearer. Gold and WTI continued to ascend.</p>
<p><img decoding="async" fetchpriority="high" class="alignnone wp-image-25717 size-full" src="https://www.keytomarkets.com/blog/wp-content/uploads/2023/09/Untitled-design-95.png" alt="" width="1758" height="841" srcset="https://www.keytomarkets.com/blog/wp-content/uploads/2023/09/Untitled-design-95.png 1758w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/09/Untitled-design-95-300×144.png 300w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/09/Untitled-design-95-1024×490.png 1024w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/09/Untitled-design-95-768×367.png 768w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/09/Untitled-design-95-1536×735.png 1536w" sizes="(max-width: 1758px) 100vw, 1758px" /><em><strong>Chart: XWTI</strong></em></p>
<h2>Key Factors for Today</h2>
<ul>
<li>Investors Brace for Central Bank Decisions as Fed Decision Looms</li>
<li>UAW Strike Continues Amidst Investor Caution Ahead of FOMC</li>
<li>Gold Extends Winning Streak as China Lifts Import Ban</li>
<li>WTI Surges to Fresh November High, Triple Digit Potential</li>
<li>RBA Minutes Reveal Cautious Approach to Rate Hikes</li>
</ul>
<h2>Market Focuses a Little Away from UAW Strike Ahead of FOMC</h2>
<p>The UAW strike against the Big Three Detroit automakers continued, highlighting the unrest in the labour market as the FOMC prepares to wrap up its 2-day meeting where investors widely expect the Fed to keep rates unchanged. The 10-year dropped slightly, dragging the US index down to 105, which allowed the EUR/USD to accelerate over 0.30%, shy of $1.070. The next resistance is expected near $1.0730, with support at $1.066.</p>
<h2>Gold Records 3-Day Streak as China Lifts Import Ban</h2>
<p>China’s central bank lifted short-term curbs imposed on gold imports in August to defend against a weakening renminbi, helping the precious metal secure a 3-day winning streak. The spread between Shanghai and London gold prices had hit a record high last Thursday but has contracted somewhat after the lift. Gold may have been slightly impacted by the latest rhetoric of a gov shutdown, along with the dollar’s drop on Monday, taking over $1930/oz and opening up $1940/oz next. Support can be seen near $1920 an ounce, with a red day ending the gold’s short-term ‘rush’.</p>
<h2>WTI Hits Fresh November High, Eyes Tripple Digits</h2>
<p>Oil continued to rise in full force on Monday, recording a fresh November high past $92 a barrel as markets appear to still price in expected supply shortages. Extending its 5-day streak past $93.80/bbl may make triple digits possible unless bulls lose the $90 handle. Nigerian Qua Iboe and Malaysian crude trade over $100 a barrel.</p>
<h2>Minutes Show RBA Backed Down on Hiking Rates</h2>
<p>Minutes of the RBA overnight showed that the bank had considered raising rates but decided to keep them unchanged due to risks associated with tightening. The RBA was concerned about a possible economic slowdown, weaker domestic consumption, and contagion from China. However, it noted that further tightening may still be needed if inflation persists. AUD/USD barely moved following the minutes’ release after closing relatively up on Monday. 0.6440 is short-term breakout resistance, with support above 0.6408 settled by 0.6429.</p>
<h2>On The Docket</h2>
<ul>
<li>EA CPI Inflation</li>
<li>CA CPI Inflation</li>
<li>ECB Elderson Speech</li>
<li>Building Permits, Housing Starts</li>
<li>NZ Dairy Trade Price Index</li>
<li>BOC Kozicki Speech</li>
<li>API Crude Oil Stock Change</li>
<li>Japan’s Trade Balance</li>
</ul>
<h2>FX 1-Day Relative Performance (USD)</h2>
<ul>
<li>Aussie 0.02% up only, Kiwi at +0.09%</li>
<li>Euro 0.10% lower, Pound down 0.03%</li>
<li>Yen is down by 0.11%, Franc by -0.03%</li>
<li>Canadian dollar up by 0.05%</li>
<li>Gold 0.04% down, Silver0.18% in red</li>
<li>Crude and Brent 0.77% and 0.65% higher</li>
<li>Natural gas is a tad lower, with 0.04% loss</li>
</ul>
<p>The post <a rel="nofollow" href="https://www.keytomarkets.com/blog/analysis/jaspers-market-squawk-19-09-2023-25710/">JASPER’S MARKET SQUAWK 19-09-2023</a> appeared first on <a rel="nofollow" href="https://www.keytomarkets.com/blog">Key To Markets Blog</a>.</p>