Market Watch APAC – 14th March 2024
The US dollar has been the main driver for the markets and currencies, as traders juggle their expectations for when the US Fed will embark on interest rate cuts to their economy. The mood for a June cut is softening after the release of the CPI earlier in the week , though indecision by investors is constraining US Treasury yields and analysts await further economic data to influence how they see the Fed will act. So in the meantime for our session today, traders will monitor the USDCNH moves once again in Asia and await the release of the US Retail Sales, US PPI and weekly Jobless claims, for any diversion in risk sentiment. From a technical perspective the AUDUSD is erring bullish , with support for remaining at 0.6545/55, and gains met with supply at the 0.6665/70 zone initially and 0.6700/10 zone behind offering further resistance.
Wall Street stocks eased off recent highs, as treasury yields initially ticked up and pressured the tech stocks. The DJI was up +0.1%, S&P500 lost -0.2% and the Nasdaq down -0.5%. Australian shares are expected to open with a positive tilt today, led by gold, energy stocks and commodities outside of iron ore, that contribute a large proportion to the index.
Gold prices squeezed higher across the day as the US-dollar retreated , despite the latest US inflation data, that should have eased expectations that the US Fed will introduce interest rate cuts any time too soon. Middle East geopolitical tensions still favour the lustre metals for safe haven flows.
Copper prices rallied after Chinese smelters, which processes half of the worlds mined copper, agreed to a collusive production cut. Dalian Iron ore prices continue to trend lower, as weak demand expectations in leading consumer China, weigh on price actions.
Brent Crude prices rallied today, following a surprise drop in US gasoline stocks, as well as the possibilities for supply disruption following the Ukraine military manoeuvres on Russian refineries.
| AUDUSD
Open today 0.6621 Yesterday’s Range 0.6600 / 0.6635 |
NZDUSD
Open today 0.6157 Yesterday’s Range 0.6144 / 0.6170 |
AUDNZD
Yesterday’s Range 1.0722 / 1.0759 |
| AUDEUR
Yesterday’s Range 0.6040 / 0.6055 |
AUDCNH
Yesterday’s Range 4.7451 / 4.7706 |
AUDGBP
Yesterday’s Range 0.5160 / 0.5180 |
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