Market Watch APAC – 22nd March 2024
The AUDUSD drove its way through the low 0.66-cent levels in Asia yesterday, touching in the 0.6630’s, after a standout Employment report from down under, before retreating in New York trading, as the US-dollar strengthened with US Treasury yield gains. The US-dollar gains come on the back of upbeat economic data releases and dovish central bank decisions. The SNB surprised with a 25 bp cut, while the BoE left their policy rate on hold and says inflation is ‘moving in the right direction’ for rate cuts to come. USDCNH rallies to a one-month high, also adding weight to the antipodeans. The AUDUSD will remain volatile as the market digests this week’s activities and releases , while looking to consolidate between support at 0.6500/10 and the resistance points around 0.6635/50’s.
Wall Street indices all posted gains for the day and struck record highs, as the Fed Reserve reassured investors that there will be rate cuts in the US this year. Upbeat forecasts for Micron Technology helped underpin the Nasdaq. The DJI was up +0.7%, S&P500 gained +0.3% and the Nasdaq up +0.2%. Australian shares are expected follow the Wall Street lead and add to gains for the week, global equities enjoy the prospect of central bank policy interest rate cuts this year.
Gold prices retreated with traders taking short term profits, all the while as the US-dollar and US Treasuries gained, even as the US Fed is re-assuring investors that there will be interest rate cuts this year.
Copper prices gained on the LME, but Aluminium was the standout for base metals, as traders see improvements in expectations for China demand. Dalian Iron ore prices continue to ride the gains as conditions in China appear to be showing signs of further monetary policy easing and better prospects for local steel producers.
Brent Crude prices eased further, pressured by softer US gasoline data and suggestion of a United Nations draft resolution that calls for a ceasefire in the Middle East.
| AUDUSD
Open today 0.6570 Yesterday’s Range 0.6561 / 0.6635 |
NZDUSD
Open today 0.6044 Yesterday’s Range 0.6038 / 0.6107 |
AUDNZD
Yesterday’s Range 1.0827 / 1.0878 |
| AUDEUR
Yesterday’s Range 0.6024 / 0.6069 |
AUDCNH
Yesterday’s Range 4.7385 / 4.7843 |
AUDGBP
Yesterday’s Range 0.5147 / 0.5193 |
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