Market Watch APAC – 21st March 2024
The US-dollar has weakened against the majors after the US FOMC left their cash rate unchanged, but surprisingly have re-iterated their expectations for three rate cuts in their dot plot for 2024. The policy view also raised the outlook for the US economy for the year foreseeing growth now at 2.1% compared to 1.4% just last December. Fed Chair Jerome Powell commented that his outlook for inflation is still moving down, albeit a bumpy trajectory, shown by recent CPI data. The AUD and the NZD have recovered from recent weakness and look to continue to challenge higher while risk markets and commodities all enjoy renewed sentiment against a weaker US-dollar. In Australia today we look to the release of the Employment numbers for February, with expectations for +40k additional jobs and unemployment rate to ease to 4.0%. The AUDUSD has consumed supply through the 0.6555/60 zone and looks to consolidate gains over the 0.6580. Support at the 0.6500/10 has been challenged in recent sessions and will look to be further support if the pair fades at the current levels.
Wall Street indices all gained for the day, as investors heralded the US Fed remaining on hold for this meeting and importantly reinforcing expectations of three rate cuts in 2024. The DJI was up +1.0%, S&P500 gained +0.9% and the Nasdaq up +1.2%. Australian shares are expected to open higher today, rolling over the enthusiasm from Wall Street investors and major sectors of mining and energy, still enjoying support from underlying commodities.
Gold prices rallied over 1% higher as the US-dollar and US Treasuries softened, following the re-assurance from Fed policy makers that there is still an expectation of three rate cuts in the worlds largest economy this year.
Copper prices eased -0.5% on the LME as traders remain cautious over expectations for China demand. Dalian Iron ore prices extended gains as steel makers were expected to resume production in China.
Brent Crude prices drifted lower, as after the US Fed left rates unchanged and saw demand concerns persisting.
| AUDUSD
Open today 0.6586 Yesterday’s Range 0.6512 / 0.6587 |
NZDUSD
Open today 0.6081 Yesterday’s Range 0.6025 / 0.6085 |
AUDNZD
Yesterday’s Range 1.0788 / 1.0833 |
| AUDEUR
Yesterday’s Range 0.6004 / 0.6032 |
AUDCNH
Yesterday’s Range 4.6983 / 4.7498 |
AUDGBP
Yesterday’s Range 0.5128 / 0.5152 |
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