Market Watch APAC – 15th March 2024
Overnight the US dollar gained against the majors, after the US PPI and Weekly Jobless data drop came in better than expected, with the PPI printing a 0.6% rise for February. This has seen investors pare back their expectations for rate cuts from the Fed and pushed US 10yr Treasury yields up 10pts. The US Retail Sales were slightly disappointing, but it is the inflation data that has claimed the limelight. Ahead of the FOMC meeting next week, markets have ruled out a rate cut and trimmed their expectations of a quarter percent cut in June, back to 64% chance. The AUDUSD reaction has seen the pair slide back to the lower end of the week’s range but still holding in the familiar territory, with market players wrestling with a lot of indecision. The is not much on the economic slate today for Aussie traders, so positioning and attention shifts to next week, awaiting the key events of RBA meeting and the Employment data. From a technical perspective the AUDUSD has turned back to neutral, with support continuing at 0.6545/55, and gains met with supply at the 0.6665/70 zone to round out the week.
Wall Street stock prices dropped, with the tech sector leading the way, after the latest inflation piece lowered investor expectations for a US rate cut any time soon. The DJI was down -0.3%, S&P500 lost -0.3% and the Nasdaq similarly down -0.3%. Australian shares are expected to open lower today, as commodities such as iron ore and copper lose ground, weighing on the mining sector.
Gold prices eased lower as the US-dollar gained , after the latest round of US inflaton data and weekly jobs reports favoured the US central bank holding off on rate cuts any time soon.
Copper prices slid lower as traders reconsidered the demand prospects in China and expected them to remain lack lustre. Dalian Iron ore prices continue their slide, as weak demand expectations in China, weigh on the market.
Brent Crude prices pushed higher , up 1.7% for the session, after the International Energy Agency forecast a tighter supply environment for 2024.
| AUDUSD
Open today 0.6581 Yesterday’s Range 0.6570 / 0.6632 |
NZDUSD
Open today 0.6131 Yesterday’s Range 0.6122 / 0.6175 |
AUDNZD
Yesterday’s Range 1.0728 / 1.0760 |
| AUDEUR
Yesterday’s Range 0.6036 / 0.6057 |
AUDCNH
Yesterday’s Range 4.7322 / 4.7707 |
AUDGBP
Yesterday’s Range 0.5158 / 0.5179 |
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