Market Watch APAC – 6th June 2024
The AUDUSD has had a day of going nowhere, showing little response to local data and overnight releases from the US. It has consolidated around the 0.6650 area and awaits further evidence that risk sentiment can improve. Australian Q1 GDP came in just +0.1% qoq versus a +0.2% expectation and the currency was little changed while yields fell on 3y and 10y bonds. For the AUDUSD today, any strength remains resisted at the 0.6690/00 zone again and declines will look for initial support at 0.6600/10’s.
Wall Street stocks were higher over the day, led by tech stocks as expectations build for a more imminent rate cut from the Fed in September meeting. The DJI was up +0.3%, while the S&P500 gained +1% and the Nasdaq also gained +1.7% for the day. Australian shares are looking to open marginally higher today supported by commodities sector and heightened risk sentiment driven by expectations of a pivot in the Fed funds rate building around the September meeting.
Gold prices regained their previous day’s losses as US Treasury yields fell after the US Private Payrolls data brought forward expectations for a rate cut from the Fed.
Copper prices on the LME slipped once again, driven by lacklustre demand from China. Dalian Iron Ore prices remain soft, as prospects deteriorate for China demand, particularly with high portside inventories as they are.
Brent Crude prices rallied today, after US data releases regenerated optimism that the Fed will be able to cut rates sooner and help stimulate demand back in to the market.
| AUDUSD
Open today 0.6648 Yesterday’s Range 0.6625 / 0.6664 |
NZDUSD
Open today 0.6193 Yesterday’s Range 0.6169 / 0.6198 |
AUDNZD
Yesterday’s Range 1.0728 / 1.0778 |
| AUDEUR
Yesterday’s Range 0.6093 / 0.6126 |
AUDCNH
Yesterday’s Range 4.8063 / 4.8336 |
AUDGBP
Yesterday’s Range 0.5189 / 0.5215 |
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