Market Watch APAC – 2nd April 2024
The AUDUSD sunk back below 0.65-cents after the US ISM manufacturing PMI came in above estimates, at 50.3 for March, and stretched US Treasury yields and US-dollar higher. The AUDUSD pair finds initial support around the 0.6480’s, but traders are eyeing off a move to 0.6440’s and techs lean towards a bearish tilt. A number of US Fed members will hit the wires today and add to the risk event for the day. On the flip side, a number of China positive news items continue to add promise to the Aussie and insulates the trade based economy with raw material export and relaxed barriers for wine and dairy. Australian data releases today will include the Melbourne Institute Inflation index for March, ANZ Job Ads for March and the RBA Minutes of the March meeting, where they left rates on hold. RBA’s Kent is due to speak as well, which will be closely monitored. The AUDUSD will be looking to test lower with technical’s leaning bearish and RSI falling.
Wall Street stocks slipped from recent highs as optimism for US Fed Rate cuts continue to fade with the latest round of manufacturing data suggesting there is no rush for the Central Bank to be cutting anytime soon. The DJI was lower -0.6%, S&P500 lost -0.2% and the Nasdaq inched higher by +0.1%. Australian shares are expected open flat today, as investors await the release of the RBA Minutes (March meeting) for clues as to the Central Bank expectations for interest rates this year and the next meeting in May.
Gold prices pared back some of its recent gains, as the US dollar and US Treasury yields rose after the latest manufacturing data thwarted expectations of a rate cut any time soon.
Copper prices in Shanghai climbed following the release of the China manufacturing data, which showed an encouraging outlook. The LME was closed for the Easter long weekend. Dalian Iron ore prices gained as the China data for manufacturing activity showed some promising expansion. The Dalian May contract was +2.6% at daytime close.
Brent Crude prices finished the day higher with tighter supply expected due to OPEC+ cuts, attacks on Russian refineries and a stronger demand outlook from China.
| AUDUSD
Open today 0.6490 Yesterday’s Range 0.6481 / 0.6539 |
NZDUSD
Open today 0.5953 Yesterday’s Range 0.5940 / 0.5993 |
AUDNZD
Yesterday’s Range 1.0891 / 1.0918 |
| AUDEUR
Yesterday’s Range 0.6035 / 0.6057 |
AUDCNH
Yesterday’s Range 4.7064 / 4.7432 |
AUDGBP
Yesterday’s Range 0.5158 / 0.5173 |
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