Markets are fairly quiet today. U.S. equity futures are hovering around Global markets, after a quiet Thanksgiving holiday week, are getting back into the swing of things today, with a few commodities making out-sized moves. Natural gas futures, which have been extraordinarily strong these past two months, are trading down almost 4% today. Revised forecasts showing an unusually warm start to December signaled reduced demand for heating fuels, thus natural gas futures have experienced big selling. Crude oil futures are also down more than 1%, as are heating oil futures.
On the other end of the spectrum, orange juice futures are continuing their recent rally, trading up almost 2% this morning as weather concerns in growing regions cause bulls to come out in force. OJ futures have rallied from around $1.05 to almost $1.30. The next resistance/target level for us is $1.40, which is the high from the August rally of this year. However reports of warmer weather is causing energy markets to decline, so we think the OJ rally might slow soon.
We focus closer on the Aussie dollar futures today. We have taken interest of recent headlines from WSJ: “Azerbaijan Buys Australian Government Bonds” and “What happens if the dollar hits $US1.20?” from the business section of the Sydney Morning Herald. We still believe the Aussie dollar futures have upside potential, as investors find the higher yielding bonds attractive. Our pivot level is 1.0390, and we believe a very important upside resistance level is at 1.0490. We notice two supportive trendlines below the market that can potentially act as floors for price.
Click to enlarge.