Market Watch APAC – 24th May 2024
The Aussie dollar attempted to regain ground as it went into northern hemisphere trading time, but the pair ran out of steam as ‘risk assets’ soured and the US-dollar dug in once again, following the release of an upbeat US Jobless Claims report and May S&P Global PMI’s that spurred on Treasury yields. Equity markets, commodity prices and gold have all been revised lower in the overnight session and dragged the performance of the AUDUSD lower with it. As expected the currency has found resistance at the old support of 0.6650’s and short term indicators are rolling over to a bearish tilt to finish the week. Analyst are starting to look ahead to next week’s Australian April CPI report, due May 29, mulling over the quarterly data and how it will likely tilt the RBA in its interest rate policy guidance. For the AUDUSD in to the week end, any strength will find initial resistance at 0.6650’s for the time being and a break down of the 0.66-figure would open up further correction to 0.6550/60 zone.
Wall Street stocks fell across the day as investor concerns for interest rates in the US to remain higher for longer, continued to rattle the outlook. The DJI fell -1.5%, the S&P500 lost -0.7% and the Nasdaq was down -0.4% for the day. Australian shares are expected to open lower today as well following the Wall Street moves overnight, that have dented commodity prices and raised concerns for equity investors.
Gold prices dropped 1.8% for the day, as traders softened their expectations of when the Fed will look to be easing rates later this year and how the economy is responding amidst latest data.
Copper prices eased again for another session, as traders and funds continue to take near-term profits from recent record highs. Iron Ore prices fell along with the broader commodity complex and cast aside any support offered from recent China stimulus initiatives.
Brent Crude prices fall again, as traders consider a downgrade in demand on the tail of ‘higher for longer’ interest rates from the US Fed.
| AUDUSD
Open today 0.6606 Yesterday’s Range 0.6598 / 0.6653 |
NZDUSD
Open today 0.6099 Yesterday’s Range 0.6091 / 0.6134 |
AUDNZD
Yesterday’s Range 1.0826 / 1.866 |
| AUDEUR
Yesterday’s Range 0.6106 / 0.6126 |
AUDCNH
Yesterday’s Range 4.7885 / 4.8243 |
AUDGBP
Yesterday’s Range 0.5199 / 0.5220 |
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