Market Watch APAC – 11th April 2024
The AUDUSD has retreated heavily on the release of the US CPI that showed inflation rose more than expected in March , 0.4% versus 0.3% expected and 3.5% against a forecast 3.4% y-o-y. This has quickly pushed out the expectations for the timing of the first rate cut for the US Fed , from June to September meeting. Also the Minutes of the Fed March meeting showed that some committee members were concerned that the progress of inflation decline had slowed and as such the FOMC would need to keep rates higher for longer. Risk assets have bourne the brunt of the shift in views and as a risk barometer currency, the AUDUSD has traded 1.7% down late in the offshore session dipping below 0.65-cents. With that the AUDUSD now looks to support at 0.6480 if it is going to recoup some of the intraday losses and regain positive momentum near-term.
Wall Street stocks traded lower after US CPI numbers for March came in hotter than expected and cooled expectations for a rate cut from the Fed any time soon. The DJI fell -1.2%, S&P500 also lower -1% and the Nasdaq down by -0.9%. Australian shares are expected to follow Wall Street lower today, as investors re-assess the prospects for interest rate cuts from the US Fed any time soon.
Gold prices retreated from recent highs, as the US-dollar and US Treasury yields gained after the better than expected inflation print pushed back rate cut expectation to later in the year.
Copper prices headed lower in response to a stronger US-dollar. The Dalian Commodity exchange saw Iron ore prices gain again yesterday with hopes that China will add stimulus to its construction industry though some investor caution capped overall gains.
Brent Crude prices gained after an Israeli airstrike threatened to stall cease fire negotiations.
| AUDUSD
Open today 0.6512 Yesterday’s Range 0.6499 / 0.6631 |
NZDUSD
Open today 0.6032 Yesterday’s Range 0.5966 / 0.6083 |
AUDNZD
Yesterday’s Range 1.0871 / 1.0951 |
| AUDEUR
Yesterday’s Range 0.6054 / 0.6108 |
AUDCNH
Yesterday’s Range 4.7187 / 4.8009 |
AUDGBP
Yesterday’s Range 0.5184 / 0.5231 |
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