Skip to main content Skip to main navigation
Skip to search input

The US dollar extended its October slide amid little fresh news of note. AUD rose to a 3-month high at 0.6565. The S&P 500 also closed at a high since August. Today’s calendar includes the RBA November minutes, comments from RBA Governor Bullock and the FOMC November minutes.


AUD/USD spent the morning around 0.6510, then began to rally when the daily Chinese yuan fixing was on the strong side (i.e. lower USD/CNY), encouraging further yuan gains. The Aussie joined the Asian FX rally, reaching a high of 0.6563, its strongest point since 10 August. Equities in Hong Kong, China and Korea rallied sharply but Japan’s Topix closed -0.5% and the ASX 200 was little changed, +0.1%. Australia’s data calendar is virtually empty this week. 



The US dollar fell against all G10 currencies on the day except CAD (about flat). EUR/USD rose from 1.0910 to 1.0952 – a high since August. GBP/USD rose from 1.2460 to 1.2510. USD/JPY fell from 149.70 to 148.35. AUD/USD rose from 0.6515 to 0.6565, fractionally above the local session high and thus a fresh high since August. NZD/USD rose from 0.5995 to 0.6035. AUD/NZD was little changed overall, at 1.0870.


ECB’s de Cos and Wunsch affirmed that ECB may be on hold but that it is inappropriate for markets to price in rate reductions. Wunsch went further to suggest that the pricing of cuts could lead to ECB raising rates again in order to counter such an easing of financial conditions.


Bank of England Governor Bailey warned that rates may need to rise again, with food price inflation potentially contributing to ongoing high wage demands. He said “it is far too early to be thinking about rate cuts.”


In the US, the Conference Board’s Leading Index for October fell -0.8% to 104.7 (est. -0.7%, prior -0.7%) – the lowest level since May 2020. It was the 19th consecutive monthly decline, with 6 of the 10 indicators making negative contributions, led by consumer expectations (-0.22%) and new orders (-0.22%).


Interest rates

US 2yr treasury yields ticked up from 4.88% to 4.91%, while the 10yr yield dropped from 4.46% to 4.42% after the results of the 20yr auction. Markets are pricing the Fed funds rate, currently 5.375% (mid), to be unchanged at the next two meetings, with easing expected from May 2024.


Australian 3yr government bond yields (futures) round-tripped from 4.15% to 4.18% and back, while the 10yr yield round-tripped from 4.51% to 4.42% and back. Markets are pricing no hike at the next meeting on 5 December, but a 50% chance of one by May 2024. New Zealand rates markets price the OCR, currently at 5.50%, to be unchanged on 29 November and in February, with easing expected from May 2024.


Credit continues to outperform with Main 1.5bp tighter to 68.5, CDX also 1.5bp better at 63 and US IG cash was another 1-2bp better with November month to date performance now a standout. Expectations for primary activity are fairly subdued in a short week. Europe opened with 6 issuers pricing ~EUR4.9bn while in the US, 4 issuers priced USD7.25bn.



Crude markets extended the weekend bounce on FT reports that the group is willing to extend and deepen cuts, “galvanised” by the Israel-Hamas conflict. The plunge in the dollar helped too with the December WTI contract up $1.71 to $77.60 and the January Brent contract up $1.54 to $82.15. A number of research reports suggested the recent drop had been excessive with Deutsche noting that Brent below $80 is “cheap relative to Q4 fundamentals”. However, Vitol noted that there are “reasons to be concerned” about weakness in Chinese energy demand. Bloomberg noted that the rise in rig count in the US last week by 6, the biggest in 6 months, was led by the Permian, citing an EIA report which expects production in the region to expand in both November and December. Meanwhile US natural gas prices slumped 2.5% to 7-week lows as concerns about high storage numbers weighed on sentiment. 


Metals surged on the slump in the US$ to 2 ½ month lows. Indeed, copper had its best day since July, up 2.2% to $8,447, all but testing the 200dma. Warnings of a shutdown at First Quantum’s massive Cobre Panama mine which accounts for about 1.5% of global copper production helped lift sentiment too. However, other metals were less impressed with aluminium up just 1.7% to $2,244 and nickel unchanged at 2 1/2-year lows. The IAI reported that global aluminium output fell 0.1% in October, with estimated Chinese production down 0.5% but still up 5.5%yy.


Iron ore markets pushed to fresh highs with the December SGX contract up $3.20 from the same time yesterday to $132.35 and the 62% Mysteel index up $2.50 to $132.75. The AFR reported that “hundreds of train drivers at BHP’s lucrative iron ore operations in WA will kick off the sector’s first industrial action in decades as workers revolt against unpredictable treatment of working conditions”. The industrial action is set to commence Friday. Indian steel consumption rose 14%yy, pointing to rising infrastructure investment.


Day ahead

From 10am AEDT, RBA Governor Bullock will participate in a panel at the ASIC Annual Forum in Melbourne.


At 11:30am AEDT, the RBA will release its minutes for the November meeting. These will draw considerable interest despite the detail of the quarterly statement released since the meeting, especially the discussion around the arguments behind the decision to raise rates.


The FOMC will release minutes for its November meeting, always a potential market mover. October’s Chicago Fed activity index should reflect the economy operating at close to capacity (market f/c: 0pt). Existing home sales in October look set to decline as supply tightens and rates threaten affordability (market f/c: -1.5%mth).

Browse topics


©2024 Westpac Banking Corporation ABN 33 007 457 141 (including where acting under any of its Westpac, St George, Bank of Melbourne or BankSA brands, collectively, “Westpac”).  References to the “Westpac Group” are to Westpac and its subsidiaries and includes the directors, employees and representatives of Westpac and its subsidiaries.


Things you should know 

We respect your privacy: You can view our privacy statement at Each time someone visits our site, data is captured so that we can accurately evaluate the quality of our content and make improvements for you. We may at times use technology to capture data about you to help us to better understand you and your needs, including potentially for the purposes of assessing your individual reading habits and interests to allow us to provide suggestions regarding other reading material which may be suitable for you.

This information, unless specifically indicated otherwise, is under copyright of the Westpac Group. None of the material, nor its contents, nor any copy of it, may be altered in any way, transmitted to, copied of distributed to any other party without the prior written permission of the Westpac Group.



This information has been prepared by the Westpac and is intended for information purposes only. It is not intended to reflect any recommendation or financial advice and investment decisions should not be based on it. This information does not constitute an offer, a solicitation of an offer, or an inducement to subscribe for, purchase or sell any financial instrument or to enter into a legally binding contract.  To the extent that this information contains any general advice, it has been prepared without taking into account your objectives, financial situation or needs and before acting on it you should consider the appropriateness of the advice. Certain types of transactions, including those involving futures, options and high yield securities give rise to substantial risk and are not suitable for all investors. We recommend that you seek your own independent legal or financial advice before proceeding with any investment decision. This information may contain material provided by third parties. While such material is published with the necessary permission none of Westpac or its related entities accepts any responsibility for the accuracy or completeness of any such material. Although we have made every effort to ensure this information is free from error, none of Westpac or its related entities warrants the accuracy, adequacy or completeness of this information, or otherwise endorses it in any way. Except where contrary to law, Westpac Group intend by this notice to exclude liability for this information. This information is subject to change without notice and none of Westpac or its related entities is under any obligation to update this information or correct any inaccuracy which may become apparent at a later date. This information may contain or incorporate by reference forward-looking statements.  The words “believe”, “anticipate”, “expect”, “intend”, “plan”, “predict”, “continue”, “assume”, “positioned”, “may”, “will”, “should”, “shall”, “risk” and other similar expressions that are predictions of or indicate future events and future trends identify forward-looking statements. These forward-looking statements include all matters that are not historical facts.  Past performance is not a reliable indicator of future performance, nor are forecasts of future performance. Whilst every effort has been taken to ensure that the assumptions on which any forecasts are based are reasonable, the forecasts may be affected by incorrect assumptions or by known or unknown risks and uncertainties. The ultimate outcomes may differ substantially from any forecasts.  


Conflicts of Interest: In the normal course of offering banking products and services to its clients, the Westpac Group may act in several capacities (including issuer, market maker, underwriter, distributor, swap counterparty and calculation agent) simultaneously with respect to a financial instrument, giving rise to potential conflicts of interest which may impact the performance of a financial instrument. The Westpac Group may at any time transact or hold a position (including hedging and trading positions) for its own account or the account of a client in any financial instrument which may impact the performance of that financial instrument. 


Author(s) disclaimer and declaration:  The author(s) confirms that no part of his/her compensation was, is, or will be, directly or indirectly, related to any views or (if applicable) recommendations expressed in this material.  The author(s) also confirms that this material accurately reflects his/her personal views about the financial products, companies or issuers (if applicable) and is based on sources reasonably believed to be reliable and accurate.   


Further important information regarding sustainability-related content: This material may contain statements relating to environmental, social and governance (ESG) topics. These are subject to known and unknown risks, and there are significant uncertainties, limitations, risks and assumptions in the metrics, modelling, data, scenarios, reporting and analysis on which the statements rely. In particular, these areas are rapidly evolving and maturing, and there are variations in approaches and common standards and practice, as well as uncertainty around future related policy and legislation. Some material may include information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. There is a risk that the analysis, estimates, judgements, assumptions, views, models, scenarios or projections used may turn out to be incorrect. These risks may cause actual outcomes to differ materially from those expressed or implied. The ESG-related statements in this material do not constitute advice, nor are they guarantees or predictions of future performance, and Westpac gives no representation, warranty or assurance (including as to the quality, accuracy or completeness of the statements). You should seek your own independent advice.


Additional country disclosures:


Australia: Westpac holds an Australian Financial Services Licence (No. 233714).  You can access  Westpac’s Financial Services Guide here or request a copy from your Westpac point of contact.  To the extent that this information contains any general advice, it has been prepared without taking into account your objectives, financial situation or needs and before acting on it you should consider the appropriateness of the advice.


New Zealand: In New Zealand, Westpac Institutional Bank refers to the brand under which products and services are provided by either Westpac (NZ division) or Westpac New Zealand Limited (company number 1763882), the New Zealand incorporated subsidiary of Westpac ("WNZL"). Any product or service made available by WNZL does not represent an offer from Westpac or any of its subsidiaries (other than WNZL). Neither Westpac nor its other subsidiaries guarantee or otherwise support the performance of WNZL in respect of any such product. WNZL is not an authorised deposit-taking institution for the purposes of Australian prudential standards. The current disclosure statements for the New Zealand branch of Westpac and WNZL can be obtained at the internet address .  


Singapore: This material has been prepared and issued for distribution in Singapore to institutional investors, accredited investors and expert investors (as defined in the applicable Singapore laws and regulations) only. Recipients of this material in Singapore should contact Westpac Singapore Branch in respect of any matters arising from, or in connection with, this material. Westpac Singapore Branch holds a wholesale banking licence and is subject to supervision by the Monetary Authority of Singapore.


U.S.: Westpac operates in the United States of America as a federally licensed branch, regulated by the Office of the Comptroller of the Currency. Westpac is also registered with the US Commodity Futures Trading Commission (“CFTC”) as a Swap Dealer, but is neither registered as, or affiliated with, a Futures Commission Merchant registered with the US CFTC. The services and products referenced above are not insured by the Federal Deposit Insurance Corporation (“FDIC”). Westpac Capital Markets, LLC (‘WCM’), a wholly-owned subsidiary of Westpac, is a broker-dealer registered under the U.S. Securities Exchange Act of 1934 (‘the Exchange Act’) and member of the Financial Industry Regulatory Authority (‘FINRA’). This communication is provided for distribution to U.S. institutional investors in reliance on the exemption from registration provided by Rule 15a-6 under the Exchange Act and is not subject to all of the independence and disclosure standards applicable to debt research reports prepared for retail investors in the United States. WCM is the U.S. distributor of this communication and accepts responsibility for the contents of this communication. Transactions by U.S. customers of any securities referenced herein should be effected through WCM.  All disclaimers set out with respect to Westpac apply equally to WCM. If you would like to speak to someone regarding any security mentioned herein, please contact WCM on +1 212 389 1269.   Investing in any non-U.S. securities or related financial instruments mentioned in this communication may present certain risks. The securities of non-U.S. issuers may not be registered with, or be subject to the regulations of, the SEC in the United States. Information on such non-U.S. securities or related financial instruments may be limited. Non-U.S. companies may not be subject to audit and reporting standards and regulatory requirements comparable to those in effect in the United States. The value of any investment or income from any securities or related derivative instruments denominated in a currency other than U.S. dollars is subject to exchange rate fluctuations that may have a positive or adverse effect on the value of or income from such securities or related derivative instruments.


The author of this communication is employed by Westpac and is not registered or qualified as a research analyst, representative, or associated person of WCM or any other U.S. broker-dealer under the rules of FINRA, any other U.S. self-regulatory organisation, or the laws, rules or regulations of any State. Unless otherwise specifically stated, the views expressed herein are solely those of the author and may differ from the information, views or analysis expressed by Westpac and/or its affiliates.


UK and EU: The London branch of Westpac is authorised in the United Kingdom by the Prudential Regulation Authority (PRA) and is subject to regulation by the Financial Conduct Authority (FCA) and limited regulation by the PRA (Financial Services Register number: 124586).  The London branch of Westpac is registered at Companies House as a branch established in the United Kingdom (Branch No. BR000106). Details about the extent of the regulation of Westpac’s London branch by the PRA are available from us on request. 

Westpac Europe GmbH (“WEG”) is authorised in Germany by the Federal Financial Supervision Authority (‘BaFin’) and subject to its regulation.  WEG’s supervisory authorities are BaFin and the German Federal Bank (‘Deutsche Bundesbank’).  WEG is registered with the commercial register (‘Handelsregister’) of the local court of Frankfurt am Main under registration number HRB 118483.  In accordance with APRA’s Prudential Standard 222 ‘Association with Related Entities’, Westpac does not stand behind WEG other than as provided for in certain legal agreements (a risk transfer, sub-participation and collateral agreement) between Westpac and WEG and obligations of WEG do not represent liabilities of Westpac.  

This communication is not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. This communication is not being made to or distributed to, and must not be passed on to, the general public in the United Kingdom. Rather, this communication is being made only to and is directed at (a) those persons falling within the definition of Investment Professionals (set out in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”)); (b) those persons falling within the definition of high net worth companies, unincorporated associations etc. (set out in Article 49(2)of the Order; (c) other persons to whom it may lawfully be communicated in accordance with the Order or (d) any persons to whom it may otherwise lawfully be made (all such persons together being referred to as “relevant persons”). Any person who is not a relevant person should not act or rely on this communication or any of its contents. In the same way, the information contained in this communication is intended for “eligible counterparties” and “professional clients” as defined by the rules of the Financial Conduct Authority and is not intended for “retail clients”.  Westpac expressly prohibits you from passing on the information in this communication to any third party. 

This communication contains general commentary, research, and market colour.  The communication does not constitute investment advice.  The material may contain an ‘investment recommendation’ and/or ‘information recommending or suggesting an investment’, both as defined in Regulation (EU) No 596/2014 (including as applicable in the United Kingdom) (“MAR”). In accordance with the relevant provisions of MAR, reasonable care has been taken to ensure that the material has been objectively presented and that interests or conflicts of interest of the sender concerning the financial instruments to which that information relates have been disclosed.

Investment recommendations must be read alongside the specific disclosure which accompanies them and the general disclosure which can be found here. Such disclosure fulfils certain additional information requirements of MAR and associated delegated legislation and by accepting this communication you acknowledge that you are aware of the existence of such additional disclosure and its contents.

To the extent this communication comprises an investment recommendation it is classified as non-independent research. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and therefore constitutes a marketing communication. Further, this communication is not subject to any prohibition on dealing ahead of the dissemination of investment research.