Market Watch APAC – 27th February 2024
The AUDUSD was comfortable holding ground from the Asia session open yesterday, but then found it hard hold above the longer dated moving averages, as copper prices slipped, iron ore lower and equities moved sideways ahead of the CPI data releases due out later this week, for Oz and the US. So the AUDUSD pair continues to find resistance in the 0.6575/80 area and notes the 0.6600/05 zone behind, while to the downside, we have found session support at 0.6530/35 and wary of 0.65-cents behind. Markets have been positioning ahead to the Australian January CPI report due out on Wednesday this week, which is expected to see inflation on the hotter side as upward pressures from house rents, petrol prices and utility bills are all still lingering. The NZD is still in focus for traders ahead of the RBNZ rate announcement on Wednesday and expected to be a Hold, but there could be some market disappointment if they offer a muted hawkish tone. Continuing US Fed commentary along with a number of economic releases, will also have traders on their toes for any hints to the dot plot for Fed rates.
Wall Street stocks were mixed for start of the week after an AI-fueled end to last week. The DJI was up just +0.01%, S&P500 was down -0.1% and the Nasdaq was up a negligible +0.03%. Australian shares are expected to open lower today, as investors mark time before the local inflation data, due out on Wednesday.
Gold prices eased lower as markets look ahead to the US inflation release due out later this week and offer some indication as to the timeline expected from the Fed regarding interest rate cuts.
Copper prices eased further on Monday as inventories rise in China on the back of slower demand. Dalian Iron ore prices carried over last week’s softness and pinged a four month low as construction activity slows in China, with disruptive weather adding to the demand outlook.
Brent Crude prices grabbed back some of last week’s losses, as traders remain mindful of shipping disruptions amid hints of higher demand. Brent Crude futures gained 1.3% for the session.
| AUDUSD
Open today 0.6540 Yesterday’s Range 0.6531 / 0.6574 |
NZDUSD
Open today 0.6173 Yesterday’s Range 0.6162 / 0.6203 |
AUDNZD
Yesterday’s Range 1.0576 / 1.0634 |
| AUDEUR
Yesterday’s Range 0.6022 / 0.6069 |
AUDCNH
Yesterday’s Range 4.7103 / 4.7329 |
AUDGBP
Yesterday’s Range 0.5153 / 0.5182 |
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