The Australian equity market is pointed to a slight negative start to the trading day after US stocks finished mixed and commodities saw sharp drops.
The Dow finished the session up 16 points at 13194 while the S&P500 index finished the day down 1.6 points at 1394. Earlier in the day European shares finish higher with the German stock index finished up 1.2 percent at 7079.
On the economic front, import prices rose by less than expected to 0.4 percent in February as a drop in food prices offset a 1.8 percent surge in petroleum costs while the US current account deficit hit a three year high of $124.1 billion.
The AUDUSD has fallen to a seven week low overnight trading down from highs of 1.0550 to recent lows of 1.0430 as commodities and oil fall.
Gold (see above chart) has dropped to an eight week low on speculation that the Federal Reserve will refrain from offering additional stimulus as the economy shows signs of recovery. Gold traded down from 1682 to recent lows of 1634.
WTI crude oil has fallen as inventories rose to the highest level in nine months and Saudi Arabia sought to ease concern that tension with Iran would disrupt supplies. WTI has traded down from highs of 107.00 to recent lows of 105.10.
The Volatility Index which is widely considered the best gauge of fear in the market has traded up to 15.31.
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