Market Watch APAC – 15th February 2024
The AUDUSD has steadied, mostly in part due a easing US-dollar as traders get positioned for the Australian Employment numbers today. US yields briefly declined after Chicago Fed Pres Austan Goolsbee said the Fed’s path back to the 2% inflation target would still be on track even if price increases ran a bit hotter than expected over the coming months, with the central bank mindful of waiting too long to start cutting rates. Market expectations for a cut in June are now nearly at 80% chance. The AUDUSD traded firmer for the session, along with broader risk assets, but still remains on the defensive. Market will be positioning ahead of the Australian Employment data due out this morning where any signs of a tight labour market will be supportive of the RBA commentary to a hawkish stance following a hold on the Cash Rate at the February meeting. RBA Gov Michele Bullock is due to present her Senate Testimony first up today. Gains overnight have been met with supply at 0.65-cents, as suggested and will need gains beyond the 0.6500/15 zone to relieve any intraday pressures. Any retreat will look for 0.6440/50 where a failure to hold could open up a deeper decline below 0.64-cents. China markets are still closed, but Hong Kong and most of Asia is set return from the Lunar New Year holidays today.
Wall Street and global stock indices edged slightly higher with US Treasuries slipping as investors digest the latest data and the US Fed’s commentary on when will be the first appropriate opportunity to cut interest rates. DJI was up +0.1%, the S&P500 also added +0.5 %, and the Nasdaq picked up +0.8% over the session. Australian shares are set to open higher today, with the focus on Australian Employment numbers to be released this morning.
Gold prices were steady below $2000 as investors wound back expectations for an early Fed interest rate cut.
Copper prices eased lower as traders stepped up sales while continuing to re-assess the timing for US Fed rate cuts. The LME was down -0.7% at session close. The Dalian commodities exchange remains closed for Chinese Lunar New Year Holidays.
Brent Crude and US futures prices slid lower on higher US Crude inventories reports.
| AUDUSD
Open today 0.6491 Yesterday’s Range 0.6446 / 0.6496 |
NZDUSD
Open today 0.6086 Yesterday’s Range 0.6051 / 0.6092 |
AUDNZD
Yesterday’s Range 1.0639 / 1.0673 |
| AUDEUR
Yesterday’s Range 0.6022 / 0.6056 |
AUDCNH
Yesterday’s Range 4.6614 / 4.6909 |
AUDGBP
Yesterday’s Range 0.5122 / 0.5169 |
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