Marketwatch APAC

Market Watch APAC – 13^th May 2024

The AUDUSD was softer heading into the final session of last week, but maintains above the 0.66-cent handle. A less dovish RBA from earlier in the week should help to keep the AUD firm, but is finding itself reacting to day to day data releases particularly against the US-dollar. The US-dollar is considered the safe haven currency, so any nervousness in market sentiment  or vulnerable data releases has see swift migration back to support it. There is a lot of key data releases around this week, with a local read on the NAB Business confidence today, followed by Wage Price  on Wednesday and the Employment data on Thursday. Tomorrow also will be the Aust Federal Budget. From the US, markets will await the US CPI release due Wednesday night AEST. The AUDUSD opens above 0.66-cents in Asia today, though strong resistance at  0.6650/75 zone prevails. Support continues at 0.6550’s in the short term.

Wall Street indices ended the day mixed once again, as the Dow stretched its gains while investors keep expectations for a more accommodative monetary policy before the end of the year and looked ahead to the US inflation data due out this week. The DJI rose +0.3%, while the S&P500 was up +0.2%, but the Nasdaq lost -0.03% for the session. Australian shares are looking to open lower today, as investors look forward to the release of local jobs numbers and the US inflation read to reaffirm interest rate expectations later in the year for both the RBA and the Fed.

Gold prices edged higher on Friday, as investors reconsidered the timing of rate cuts this year and awaited fresh data for direction.

Copper prices were up 1% on the LME as funds and traders looked to square out the positions ahead of a busy week of US and global data. Dalian Iron Ore futures were lower again on Friday, weighed by rising portside inventories and nervousness over imminent demand, though emerging stimulus measures for the property sector from China authorities, did offer some support.

Brent Crude closed down 1.3% at $82.79/bbl on Friday, as commentary from US Fed officials lends to higher for longer interest rates, that would curb demand for crude consumers.