RBA Leaves Rates Unchanged

by Archer Financial Services | Dec 05, 2017

By Alan Bush | Senior Financial Economist at ADMIS     


S&P 500 and Dow Jones futures advanced to record highs yesterday after over the weekend the Senate passed its version of a $1.4 trillion package of tax cuts in a narrow 51-49 vote. This vote moves the legislation closer to approval by the end of the year.

Talks will likely begin next week between the Senate and the House, which had approved its own version of the legislation.

Once the bills are reconciled, the resulting legislation could cut corporate tax rates to 20% from 35%.

The 8:45 central time November PMI services index report is expected to be 54.7 and the 9:00 November Institute for Supply Management nonmanufacturing index is anticipated to be 59.

The computer models that I use continue to generate bullish signals for stock index futures.

The main trend for stock index futures is higher.



The U.S. dollar gained in spite of news that the U.S. trade deficit widened in October.

The trade gap in goods and services expanded 8.6% from the prior month to a seasonally adjusted $48.73 billion in October. Economists had expected a narrower deficit of $47.5 billion.

The British pound declined due to disappointment over the lack of a Brexit deal.

The Canadian dollar advanced on news that Canada's trade deficit in October narrowed from the previous month to a seasonally adjusted 1.47 billion Canadian dollars. 

The Australian dollar is higher after data showed stronger retail sales.

The Reserve Bank of Australia held its regularly scheduled policy meeting today. Australia’s central bank kept its cash rate target at a record low of 1.5%, which was widely expected by economists.

This decision comes after RBA Governor Philip Lowe late last month told economists there is no compelling reason for a change in interest rates. 



The U.S. Senate Banking Committee will vote on the nomination of Jerome Powell to be chairman of the Federal Reserve.

There are no Federal Reserve speakers scheduled for today.

The Treasury will auction 52 week bills today.

According to financial futures markets, the probability that the Federal Open Market Committee will increase its fed funds rate at the December 12-13 meeting is over than 99%.



December 17   S&P 500

Support    2633.00       Resistance    2651.00


December 17   U.S. Dollar Index

Support    92.960         Resistance    93.370


December 17    Euro Currency

Support    1.18170       Resistance    1.18930


December 17    Japanese Yen

Support    .88650         Resistance    .89090


December 17    Canadian Dollar

Support    .78730         Resistance    .79310


December 17   Australian Dollar

Support    .7595           Resistance    .7667


March 18   Thirty Year Treasury Bonds

Support    152^16        Resistance    153^8


February 18   Gold

Support    1267.0         Resistance    1283.0


March 18   Copper

Support    2.9700         Resistance    3.1100


January 18   Crude Oil

Support    57.02           Resistance    57.98



For more information about these markets, please contact Alan at 312.242.7911  or via email at alan.bush@admis.com. Thank you.

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