Market Watch APAC – 17th June 2024
A busy week with economic data releases and Central Bank meetings is expected to provide some lively markets for the next few days. The central banks of UK, Australia, China, Switzerland and Norway are all due to meet and release their latest policy outcomes. In the US, a handful of Fed Officials are penciled in to speak, along with latest updates on Business activity reports and housing data. Locally, the RBA is still expected remain with a hawkish tone, while holding rates higher for longer in an attempt to curb consumer prices downunder, while in the US, Fed Chairman Powell signaled that he wasn’t in a rush to ease monetary policy at last weeks meeting. The RBA meets tomorrow for their decision, while markets today will look to the ANZ-Indeed Job Ads report, where economists expect to see a decline by 1.2% for April. Also today, China data will warrant some attention , with any signals for improved economy being helpful to the AUD trajectory. Trading for the AUDUSD resumes just behind the Asia open, with modest support down to the 0.6610/20 zone and rallies should find supply to 0.6650’s and 0.6695/6715 behind, on any strength.
Wall Street indices ended the week in mixed fashion, as investors reconciled cooler than expected data and redeemed expectations for Fed rate cuts this year. The S&P500 lost -0.04% and the DJI eased lower -0.2%, while the Nasdaq posted a marginal gain of +0.1% for the day. Australian shares are expected to open slightly lower today, as investors look forward to tomorrow’s RBA meeting, though some support remains from commodities for the mining sector.
Gold prices picked up 1% in to the weekend as traders looked to digest the US data and prospects of a rate cut at some point later this year.
Copper prices eased lower on the tail of firmer US-dollar moves. Iron Ore prices on the Dalian Commodity Exchange made gains for the day, though high portside inventories in China and lacklustre demand expectations are weighing on the price action.
Brent Crude and WTI prices settled lower at the close, but still holding some gains for the week as investor favour improved conditions for demand in crude and fuel at the back end of the year.
| AUDUSD
Open today 0.6633 Yesterday’s Range 0.6592 / 0.6641 |
NZDUSD
Open today 0.6133 Yesterday’s Range 0.6116 / 0.6171 |
AUDNZD
Yesterday’s Range 1.0752 / 1.0789 |
| AUDEUR
Yesterday’s Range 0.6166 / 0.6192 |
AUDCNH
Yesterday’s Range 4.7950 / 4.8278 |
AUDGBP
Yesterday’s Range 0.5192 / 0.5218 |
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