Morning Note: Tesla Soars, AUDUSD Hits Key Support, Oil & SP500 Insights

Today is marked by significant events and trends that bring attention to some possibilities forthe first weeks of 2025. One of them is the AUDUSD, which is now located at a vital supportregion in the daily chart. Tesla shares are close to its all-time high, but will it be able tomaintain the pace in 2025?

Here are the key highlights:

Tesla: Uptrend and Earnings in January

Tesla shares continue to surprise and are close to their all-time high. Since October 23, thestock has risen more than 100%, driven by renewed optimism in the market after DonaldTrump's election. However, the company’s latest financial report showed slower growthcompared to previous years, raising questions about the sustainability of the current pace.With the next report due in January, the big question is whether Tesla can maintain this levelof growth through 2025.

Oil Inventories

Crude Oil Inventory data will be released today, offering crucial insights into U.S. oil supply.An increase in inventories could indicate lower demand, which could put downward pressureon prices and negatively impact the US dollar. In contrast, a drop in inventories couldstrengthen the currency, given the importance of oil as a strategic asset for the US economy.

The Aussie testing Support region in the daily chart

The AUDUSD is testing the most important support region since 2022, reflecting acumulative decline of 10.5% without any significant pullback. This downward movementraises speculation about the role of the recent strengthening of the US dollar, possiblyrelated to Donald Trump's return to the presidency. The question now is whether theAUDUSD will be able to hold this support region or whether we will see new lows in thecoming days

Uptrend in the SP500

The SP500 remains very close to its all-time high on the daily chart, fuelled by optimismregarding the recent decision by the FED to cut interest rates. In addition, the most recentinflation data, with a reading of 2.7%, shows signs of gradual control, although slightly abovethe FED's 2% target. This scenario of inflationary moderation reinforces the narrative thatthe US economy may be entering a more stable phase, which supports high prices in thestock market.Investors should remember that this time of year is usually marked by a significant change involatility due to the end-of-year festivities. Therefore, each potential opportunity should beanalysed in light of the financial market's current seasonality.

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Past performance is not indicative of any future results. This information is provided for informativepurposes only and should not be construed to be investment advice.