Market Watch APAC – 9th May 2024
The AUDUSD retreated for another day, as markets remain firmly fixated on the timing of the central bank rate cuts and the differentials that may favour one currency over the other. The Aussie swaps markets have largely discounted any further rate hikes by the RBA over the back end of the year and lowered prices into the new year, representing the timing of their first expected cut. Retreating copper prices have also weighed on the sentiment for the antipodean currencies. The AUDUSD has remained heavy with rallies limited to 0.66-cents while strong resistance at 0.6650/75 zone prevails. Support continues at 0.6550’s in the short term.
Wall Street indices ended the day mixed with just the Dow stretching its gains as investors keep expectations for a more accommodative monetary policy before the end of the year. The DJI rose +0.4%, while the S&P500 was flat and the Nasdaq lost -0.2% for the session. Australian shares are looking to open heavier today, as Iron Ore prices soften, weighing on the mining sector.
Gold prices ended the session near flat, as investors reconsidered the timing of rate cuts this year and awaited fresh data for direction.
Copper prices dropped for the day as the US-dollar made small gains, but expectations for higher demand across the energy transition keeps sentiment buoyant. Dalian Iron Ore futures were softer yesterday, weighed by rising portside inventories and even as traders assess proposed stimulus measures for the property sector from China authorities.
Brent Crude and WTI prices settled slightly higher, as US crude inventory data showed a fall last week, while refiners were ramping up production in preparation for the US summer driving season.
| AUDUSD
Open today 0.6579 Yesterday’s Range 0.6558 / 0.6600 |
NZDUSD
Open today 0.6004 Yesterday’s Range 0.5982 / 0.6006 |
AUDNZD
Yesterday’s Range 1.0954 / 1.0999 |
| AUDEUR
Yesterday’s Range 0.6104 / 0.6137 |
AUDCNH
Yesterday’s Range 4.7427 / 4.7643 |
AUDGBP
Yesterday’s Range 0.5254 / 0.5277 |
