Market Watch APAC – 13th June 2024
The release of the US inflation data commenced a busy session offshore for the US-dollar, core CPI for May coming in at +0.2%, but the pronounced reaction for the dollar was the post-FOMC meeting statement, that saw Chairman Powell reiterate the bank’s focus on the US labour market, noting a strong but cooling trend. Should unemployment change dramatically the central bank will be ready to respond accordingly. The shift for the committee’s dot plot on rates from three to one sent the US-dollar lower across the G10 counter currencies. This helped to underpin a modest move higher for the AUDUSD and more so for the NZDUSD downunder. Heading in to Asia today the focus shifts for the Aussie to the local Employment data, where consensus is looking for a rise in employment of +30k and the Unemployment rate to ease to 4.0%. Traders will be cogniscent of the release and its influence for RBA expectations and subsequent movement on the AUD. Levels to watch for the AUDUSD today are support at the 0.6610/25 zone nearby and rallies finding supply in to 0.6695/6715 on any strength. Heading in to the Employment numbers will see limited positioning around the 0.6650 pivot.
Wall Street indices saw record closing highs for the Nasdaq and the S&P, after the US inflation data came in higher, but softer than expectations, and the Fed revised their rate cut expectations to just one for move lower for the calendar year. The S&P500 gained +0.9% and the Nasdaq rose +1.5% also, however the DJI eased lower -0.1% for the day. Australian shares will be looking ahead to the Australian Employment data this morning, though higher Oil prices and gains on Gold should underpin higher moves.
Gold prices managed small gains for the day, though it pared daily gains after the US Fed proposed just the one interest rate cut eventuating for this year.
Copper prices bounced higher by 1.8% on the day as the US-dollar fell after the US CPI data release overnight. Iron Ore prices on the Dalian Commodity Exchange continued their decline amidst directionless trading as China demand wavers along with elevated portside inventories.
Brent Crude prices settled higher at close with Middle East tensions falling back in to focus and lending support for prices.
| AUDUSD
Open today 0.6664 Yesterday’s Range 0.6598 / 0.6706 |
NZDUSD
Open today 0.6186 Yesterday’s Range 0.6135 / 0.6222 |
AUDNZD
Yesterday’s Range 1.0745 / 1.0799 |
| AUDEUR
Yesterday’s Range 0.6141 / 0.6185 |
AUDCNH
Yesterday’s Range 4.7983 / 4.8637 |
AUDGBP
Yesterday’s Range 0.5179 / 0.5222 |
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