Market Watch APAC – 22nd February 2024
The US-dollar softened after the minutes of the latest Fed meeting came in largely as expected and revealed that most of the board were concerned about cutting rates too soon. Traders have responded, pushing back their expectations for the first Fed cut to June. The AUDUSD has held similar ranges for the day as previous sessions. After the AUDUSD had cleared interest through the 0.6550’s previously it has then stalled at the resistance of 0.6580/95 zone and will be looking to clear there for a chance at further gains. This will rely on the fundamentals of Australian Interest rates remaining higher than the US rates for longer, the prospect of improving global trade and further stimulus to the Chinese economy. On the flip-side, any retreat will look for 0.65-cents and 0.6480 behind, where a failure to hold could allow for a retest of the 0.6435/45 support.
Wall Street and global stocks retreated after the Fed Minutes from the latest policy meeting reaffirmed expectations that the central bank will hold rates higher for longer. The DJI was down -0.3%, S&P500 down -0.3% and the Nasdaq fell -0.8%. Australian shares are set to open lower today, as investors follow Wall Street moves and weighed down by the mining sector.
Gold pries scraped higher as the US-dollar eased following the release of the US Fed Minutes and the Middle East conflict continued to attract safe-haven demand.
Copper prices edged up on a retreating US-dollar and a lift in global optimism. Aluminium has been garnishing attention with expectations that US Pres Biden will impose major sanctions on Russia metals, in response to the death of the opposition leader Alexey Navalny. The Dalian Iron ore contract traded further lower as traders remained concerned over demand for steel in the top consumer China and steel mill margins weighing on output.
Brent Crude prices climbed near 1% higher, as concerns about supply tightness due to the Middle East conflicts.
| AUDUSD
Open today 0.6551 Yesterday’s Range 0.6533 / 0.6573 |
NZDUSD
Open today 0.6180 Yesterday’s Range 0.6161 / 0.6198 |
AUDNZD
Yesterday’s Range 1.0595 / 1.0630 |
| AUDEUR
Yesterday’s Range 0.6048 / 0.6077 |
AUDCNH
Yesterday’s Range 4.7055 / 4.7243 |
AUDGBP
Yesterday’s Range 0.5181 / 0.5202 |
We hope you have found our expertly curated MarketWatch analysis useful in navigating the ever-changing FX landscape. To enhance our services and make sure you receive the most relevant and timely insights we have recently made some exciting updates to our newsletter.
