Market Watch APAC – 29th February 2024
The release of the US GDP Q4 numbers has brought about a slide in US Treasuries, reflecting market expectations on interest rates while investors now await the key inflation data that will further provide insight into when the Fed would look to start cutting rates. USD Q4 GDP increase 3.2% per annum surprising economists who had expected growth to be unrevised. The US-dollar gained, despite softer treasury yields, as investors positioned for inflation data tomorrow, while AUDUSD eased on the back of the local CPI read, that remains at a two year low and unchanged at 3.6% yoy. The NZD also fell following the RBNZ’s decision to leave OCR rates on hold and revised its peak forecast. The AUDUSD pair slides back below 0.65-cents overnight and looks to find initial support at the 0.6470/80 zone. Any strength on the Aussie today will probably be met with supply into 0.6545/55 area. Today we get Australian Retail Sales for Jan, expected to be 1.5% for the month, and Private Capex. Further US Fed commentary from FOMC officials and positioning ahead of the US inflation numbers will likely be the main focus.
Wall Street indices eased over the session, as investors awaited the release of the US inflation data and hope it will provide further clues as to when the US Fed may look to start cutting rates. The DJI was down -0.3%, S&P500 was down -0.2% and the Nasdaq was off -0.5%. Australian shares are expected to roll over the sentiment of global bourses overnight, as investors remain attentive to the US inflation read for hints as to US Fed policy changes.
Gold prices squeezed higher as investors position ahead of the US inflation number and follow comments from various Fed officials over their thoughts on Fed policy timelines.
Copper prices slipped lower as the US-dollar picked up. Dalian Iron ore prices added gains as optimism continued for demand recovery in China, though concerns over their property sector prevails as a headwind for the outlook.
Brent Crude prices were marginally softer by close, as weekly reports of US stockpiles came in higher than anticipated and the US-dollar stronger.
| AUDUSD
Open today 0.6496 Yesterday’s Range 0.6485 / 0.6550 |
NZDUSD
Open today 0.6098 Yesterday’s Range 0.6082 / 0.6178 |
AUDNZD
Yesterday’s Range 1.0600 / 1.0687 |
| AUDEUR
Yesterday’s Range 0.5990 / 0.6039 |
AUDCNH
Yesterday’s Range 4.6823 / 4.7242 |
AUDGBP
Yesterday’s Range 0.5127 / 0.5164 |
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