Market Watch APAC – 30th May 2024
Further gains in US Treasury yields has driven the dollar higher and understandably weighed on risk markets and risk currencies. The AUDUSD has traded down to the lows of 0.66-cents overnight. Australian inflation numbers, yesterday, saw the CPI rise to 3.6% yoy and above expectations, to underpin the notion that the RBA will have to hold rates higher-for-longer to combat this trend. For now it will have committee members on edge at the next meeting in June. RBA Deputy Governor Sarah Hunter speaks this morning. Australian Building Approvals for April and Private Capex for Q1 will add to the Reserve Bank’s data dependent ‘kit-bag’ for its rates decision next month. For the Asia session today, any strength will look to regain the 0.6650/60 zone and a further decline will look for some support at 0.6560’s.Tonight, the US releases the Annualised GDP Q1 and Initial Jobless Claims for the week, that will be closely monitored by traders.
Wall Street indices closed lower today as US-Treasury yields gained with investors troubled over the timing and scale of US interest rate cuts. The DJI fell -1.1% loss, while the S&P500 lost -0.8% and the Nasdaq declined -0.6% for the day. Australian shares are expected to open lower today, following the hotter than expected inflation read that cooled any near-term hope for lower interest rates from the RBA.
Gold prices retreated as US-dollar strengthened with rising Treasury yields and hawkish rhetoric from Fed Officials and markets positioned ahead of the key US data due out tonight.
Copper prices on the LME declined, though speculative interest remains high. Dalian Iron Ore prices traded flat, as traders continue to re-assess demand for steel in China at this time of the year.
Brent Crude prices pulled back today, as growing concerns that US interest rates will remain high and dampen fuel demand.
| AUDUSD
Open today 0.6610 Yesterday’s Range 0.6610 / 0.6664 |
NZDUSD
Open today 0.6115 Yesterday’s Range 0.6112 / 0.6149 |
AUDNZD
Yesterday’s Range 1.0810 / 1.0851 |
| AUDEUR
Yesterday’s Range 0.6110 / 0.6144 |
AUDCNH
Yesterday’s Range 4.8075 / 4.8424 |
AUDGBP
Yesterday’s Range 0.5199 / 0.5225 |
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