Market Watch APAC – 4th March 2024
The AUDUSD has welcomed a steady start to the week after pinching small gains on Friday with a moderating US-dollar. Last minute gains on Wall Street stocks and buying of AUDJPY have been able to underpin the AUDUSD move. This week will be a data filled one, closely watch for shaping central bank policy. Australia looks forward to Q4 GDP, Building Approvals, Current Account and January Trade numbers while the US gets Non-farm Payrolls as well as other key data and Powell’s Congressional Testimony and China entertains its National People’s Congress. US non-farm payrolls are tipped to soften to 200k from 353k. Though AUD asset managers have been positioning for a move lower, softer US Treasury yields are tempting the AUDUSD higher with rallies being met with supply into 0.6545/55 area. A retracement lower will look for the support at the 0.6470/80 zone.
Wall Street stocks added further gains at record highs as the tech sector lifted the Nasdaq in particular. The DJI was up +.2%, S&P500 was up +0.8% and the Nasdaq was higher too +1.1%. Australian shares are expected to bed mixed at the open today, with investors cautious over iron ore prices and monitoring the pulse of China’s economic data.
Gold prices added further to weekly gains and climbed another 2.1%, as investors postulate US rate cuts by June.
Copper prices rose slightly in response the US-dollar, but had earlier traded heavy on shrinking factory activity in China. Dalian Iron ore prices drifted lower for a second week, as concerns that China central authorities are not likely to extend enough economic stimulus continue and another round of weak factory data hits the wires.
Brent Crude prices rose as traders position ahead of the OPEC+ meeting, where supply agreements will be headlined for Q2.
| AUDUSD
Open today 0.6526 Yesterday’s Range 0.6490 / 0.6534 |
NZDUSD
Open today 0.6104 Yesterday’s Range 0.6077 / 0.6112 |
AUDNZD
Yesterday’s Range 1.0665 / 1.0700 |
| AUDEUR
Yesterday’s Range 0.6004 / 0.6031 |
AUDCNH
Yesterday’s Range 4.6811 / 4.7111 |
AUDGBP
Yesterday’s Range 0.5138 / 0.5165 |
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