Market Watch APAC – 17th May 2024
The US-dollar reversed higher with Treasury yields overnight, as risk soured a touch and Fed officials added fresh comments that interest rates would remain steady until inflation recedes. US Jobless claims came in near forecast and building permits were down for a second month. In Australia yesterday the Employment data came in mixed with unemployment ticking higher to 4.1%, but with total employment registering 38.5k for April which was higher than expected. After a round of buying earlier in the session that took the AUDUSD through 0.67-cents, it then spent the rest of the day searching for support in the 0.6650’s, which was expected. While divergent central bank policy remains between the RBA and the US Fed, AUD should remain favourable for investors. The AUDUSD opens the Asia session at similar levels in the 0.6680’s, and still leans bullish with the chance to regain 0.67-cents. Support should prevail at 0.6645/55 for the day on any immediate pullback.
Wall Street indices saw the Dow hit an all time high over 40,000 before retreating lower on investors expectations for a Fed rate cut in the midst of an inflation slowdown, plus another round of strong corporate earnings. The DJI ended down -0.1%, the S&P500 fell -0.2%, and the Nasdaq dropped -0.3% for the overall session. Australian shares are expected to slip lower again today after investors continue to digest the latest US inflation print and its implications for Fed rate cuts later this year.
Gold prices retreated for the day as the US-dollar gained as the precious metal markets look to the timing of Fed rate cuts later in the year.
Copper prices rallied higher on the CME as traders weigh up short positions that may be difficult to deliver and require cover to roll forward. Iron Ore prices regained some ground over the day as China authorities consider the latest support measure to purchase unsold dwellings.
Brent Crude prices rose once again as investors look to the possibility of easing interest rates that could bring about renewed demand.
| AUDUSD
Open today 0.6679 Yesterday’s Range 0.6654 / 0.6714 |
NZDUSD
Open today 0.6122 Yesterday’s Range 0.6096 / 0.6140 |
AUDNZD
Yesterday’s Range 1.0907 / 1.0944 |
| AUDEUR
Yesterday’s Range 0.6129 / 0.6164 |
AUDCNH
Yesterday’s Range 4.8084 / 4.8379 |
AUDGBP
Yesterday’s Range 0.5262 / 0.5288 |
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