Market Watch APAC – 2nd May 2024
The US-dollar fell after the FOMC expressed inflation concerns and Fed Chair Powell suggested that there will be no further rate hikes at his post meeting pressor. The Fed also scaled back their pace of quantitative easing, as was expected. Powell said it will probably take longer than previously expected for the Fed to be confident with the inflation trajectory, before they start cutting rates. The US-dollar lost ground against all the G10 peers and particularly against the Swedish Kroner and the Aussie Dollar, with the latter gaining 1% over the session. For the AUDUSD now the technicals have moved back to bullish and opens the Asia session above the short-term moving averages. Traders will be looking to consolidate gains and watch the 0.6450/75 zone for support , while any strength will require further gains above 0.6560’s to draw further interest to the topside.
Wall Street stocks finished the day in mixed fashion after the US Fed left rates on hold as widely expected, but flagged the next move will be a cut in rates. The DJI rose +0.2%, while the S&P500 fell -0.4% and the Nasdaq lost -0.3%. Australian shares are looking to open lower today as investors digest the happenings of the Fed meeting and what it means for interest rate outlook.
Gold prices recouped near all of its previous day losses, as the US dollar and US Treasury yields sank after the US Fed meeting and Jerome Powell’s post meeting comments.
Copper prices slipped again for the session, as fund managers look to take near term profits around three year highs. The Dalian Commodity exchange Iron Ore futures dropped slightly, ahead of the Chinese public holiday, but there were still overall monthly gains, as traders see optimism that their property sector can improve.
Brent Crude prices dropped another -3% spurred on by a rise in US Crude production, hopes for a Middle East ceasefire and fading hopes of a US Fed rate cut any time too soon.
| AUDUSD
Open today 0.6523 Yesterday’s Range 0.6466 / 0.6539 |
NZDUSD
Open today 0.5929 Yesterday’s Range 0.5875 / 0.5940 |
AUDNZD
Yesterday’s Range 1.0975 / 1.1020 |
| AUDEUR
Yesterday’s Range 0.6064 / 0.6095 |
AUDCNH
Yesterday’s Range 4.6873 / 4.7314 |
AUDGBP
Yesterday’s Range 0.5178 / 0.5212 |
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