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(Wallace Refiners) – Gold (0.04%) has pushed marginally higher overnight but rejected the high’s of the Asian session at $1884.45 per ounce. The yellow metal is still no way near recovering from the losses seen on Monday and the is still a possibility this move is just a small retracement before the price continues to move lower. Base metals are mixed this morning with copper trading -0.03% lower and aluminium and tin moving around half a percent into the black.
Overnight the Nikkei 225 (1.78%) and ASX (1.72%) traded well but the Chinese bourses struggled as the Shanghai Composite fell just over half a percent. The main story in stocks is still the rotation out of tech stocks as the “work from home” trade unwinds.
The main event overnight came from the RBNZ, the central bank left the cash rate unchanged and the LSAP (QE) NZD100bn. The main reaction to the RBNZ announce came from NZD/USD. The market has now reduced its bets that the bank will move to negative rates. This lead the NZD to strengthen across the board and NZD/USD trades 0.88% higher leading into the EU session.
In coronavirus news, France and Italy are said to be struggling for beds in their respective ICU units. Germany is also struggling as around 70% of ICU beds have been occupied with patients infected with COVID-19.
Looking ahead to today’s session the main highlights include the OPEC monthly report and comments from ECB’s Lagarde, de Guindos, Lane,
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