Market Watch APAC – 14th June 2024
Despite the rise in May employment of +39.7k and the Unemployment rate to easing to 4.0% yesterday, the AUDUSD extended its decline during the Asia session. The RBA is still expected to hold rates higher for longer in an attempt to curb inflation downunder, while the US-dollar is enjoying some renewed demand, as Fed expectations for just the one rate cut this year revive the demand for Treasuries. Trading for the AUDUSD resumes in Asia with modest support down to the 0.6610/25 zone nearby and rallies should find supply to 0.6695/6715 on any strength.
Wall Street indices made modest gains on the Nasdaq and the S&P once again, as investors reconciled a cooler than expected inflation report and redeemed expectations for Fed rate cuts this year. The S&P500 gained +0.1% and the Nasdaq rose +0.2% also, however the DJI eased lower -0.2% for the day. Australian shares are expected to open steady today, as investors digest the latest employment data and the implication for RBA policy, while some support remains from commodities for the mining and energy sector.
Gold prices drifted lower as traders looked to close long positions and digested the US producer price data, released earlier in the day.
Copper prices gave back previous days gains, as investors considered the revisions to US Fed rates for the remainder of the year. Iron Ore prices on the Dalian Commodity Exchange held firm for the day, though high portside inventories in China and lacklustre demand expectations are weighing on the price action.
Brent Crude prices settled marginally higher at the close, with OPEC forecasts signaling future demand.
| AUDUSD
Open today 0.6636 Yesterday’s Range 0.6626 / 0.6675 |
NZDUSD
Open today 0.6169 Yesterday’s Range 0.6161 / 0.6198 |
AUDNZD
Yesterday’s Range 1.0753 / 1.0785 |
| AUDEUR
Yesterday’s Range 0.6145 / 0.6182 |
AUDCNH
Yesterday’s Range 4.8162 / 4.8475 |
AUDGBP
Yesterday’s Range 0.5196 / 0.5215 |
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