Will be interesting to see what transpires from TIC Long-Term Purchases due out at 9.00am US time, 12.00am Aus EST.
This very important economic number measures the difference in value between foreign long-term securities purchased by US citizens and US long-term securities purchased by foreigners during the reported period.
If actual figures are greater than forecast expect $AUD to depreciate.
This data represents the balance of domestic and foreign investment - for example, if foreigners purchased $100 billion in US stocks and bonds, and the US purchased $30 billion in foreign stocks and bonds, the net reading would be 70.0B. The market impact tends to be significant but varies from month to month
Why do traders and investors care about this figure?
Demand for US securities and currency demand are directly linked because foreigners must buy the domestic currency to purchase the nation's securities.
How does that impact commodities such as aluminium, copper and tin?
Lol, I don't know but if the $USD strengthens against $AUD it's very likely that metal markets will fall.
But the market is a strange beast! Since when has gold trended up with equities. We tread and live in unchartered waters.
;) Nic
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