Marketwatch APAC

Daily Insights
May 22, 2024

Market Watch APAC – 23rd May 2024


The US-dollar gains as yields rise, after the FOMC Minutes of the latest meeting reveal some voters were even considering whether the Fed Funds rate was restrictive enough to bring inflation back to target. This more hawkish tone was not as pronounced as when Fed Chairman Powell took to the press conference after the meeting. It clearly is a message that rates will stay higher for longer to cool inflation towards their target. Risk assets, equities and commodities have all corrected lower in response to the news. The AUDUSD has slipped lower as well and remains at the mercy of the US-dollar for the time being. Judo Bank PMI’s today may have a small impact during the Asia session. Elsewhere overnight, UK inflation came in at 2.3% which was lower than last, but was higher than economists had been expecting and subsequently pushes back the chances of a rate cut from the BoE. Prime Minister Rishi Sunak also called an election for the UK to be held on 4th July. For the AUDUSD, the structural support at 0.6645/55 has been surpassed and while we consider the pair to be at the bottom of the recent range, it could open up a look to 0.6580’s on any further deterioration, but with the technical indicators mixed , any strength will find initial resistance at 0.6650’s for the time being.

Wall Street stocks fell across the day after the latest release of the Fed Meeting Minutes, suggested interest rates in the US would remain higher for longer and dampened the enthusiasm for investors. The DJI fell -0.5%, the S&P500 lost -0.3% and the Nasdaq gave back -0.2% for the day. Australian shares are expected to open lower today following the Wall Street moves overnight.

Gold prices eased from recent highs, as traders softened their expectations of when the Fed will look to be easing rates later this year.

Copper prices dropped further as traders continue to be seen taking near-term profits from recent rallies. Iron Ore prices pressed on higher as prospects improve for ongoing demand to be supported by China initiatives.

Brent Crude prices retreated once again losing another -1% for the session, as the Fed minutes upset the expectations for a drop in interest rates any time soon, threatening the prospects for renewed demand.



Open today 0.6620

Yesterday’s Range 0.6608 / 0.6685


Open today  0.6097

Yesterday’s Range 0.6083 / 0.6152


Yesterday’s Range 1.0857 / 1.0946


Yesterday’s Range 0.6108 / 0.6154


Yesterday’s Range 4.7940 / 4.8334


Yesterday’s Range 0.5199 / 0.5254


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Economic Calendar

JPY - Flash Manufacturing PMI
AUD - MI Inflation Expectations
EUR - French Flash Manufacturing PMI
EUR - French Flash Services PMI
EUR - German Flash Manufacturing PMI
EUR - German Flash Services PMI
EUR - Flash Manufacturing PMI
EUR - Flash Services PMI
GBP - Flash Manufacturing PMI
GBP - Flash Services PMI
All - G7 Meetings
CNY - Foreign Direct Investment ytd/y
GBP - MPC Member Pill Speaks
CAD - NHPI m/m
USD - Unemployment Claims
CNY - CB Leading Index m/m
USD - Flash Manufacturing PMI
USD - Flash Services PMI
EUR - Consumer Confidence
USD - New Home Sales
USD - Natural Gas Storage
USD - FOMC Member Bostic Speaks
NZD - Trade Balance
GBP - GfK Consumer Confidence
JPY - National Core CPI y/y

Market Indicators

Currency Pairs
Pair High Low
aud/usd 0.66853 0.6597
nzd/usd 0.61523 0.6076
aud/nzd 1.09418 1.08176
usd/jpy 156.844 156.141
usd/cad 1.36982 1.36239
eur/usd 1.08635 1.08174
gbp/usd 1.27613 1.27001
aud/eur 1.63719 1.62479
aud/jpy 104.442 103.483
Equities and Commodities
S&P 500 5313.55
DOW 39608.1
Nasdaq 100 18746.3
ASX200 7777.53
GOLD 2378.1
WTI 77.24

This document is for information purposes only and does not constitute any recommendation or solicitation to any person to enter into any transaction or adopt any trading strategy, nor does it constitute any prediction of likely future movements in exchange rates or prices or any representation that any such future movements will not exceed those shown on any illustration. All exchange rates and figures appearing are for illustrative purposes only. You are advised to make your own independent judgment with respect to any matter contained herein.