Market Watch APAC – 19th March 2024
The AUDUSD slipped a tad lower yesterday, eventually finding support from some commodity and equity gains, while a surprise uptick in China retail sales and Industrial Output also helped to temper the slide. Rising US Treasury yield spreads over Bunds, Gilts and JGB’s have been the driver of favour for the US-dollar to start the week, with Central Bank meetings across the week all attracting attention. The stickiness of US inflation has been seen as a signal for investors that the US Fed will have to tread carefully when considering when best to commence cutting their funds rate. For Australia today we look to the RBA meeting, where it is highly expected that they will not change the cash rate (4.35%) in either direction, but important for the Aussie will be the accompanying statement that is expected to remain hawkish in line with persistently high house prices and the slow decline for inflation. From a technical perspective the AUDUSD will be watching that support at 0.6550/60, with 0.6505/10 the next level behind, and gains met with supply at the 0.6585/90 zone initially, before attempting a re-run at the 0.66-cent level, should the RBA message be market favouring.
Wall Street indices all advanced to open the week, with the tech sector finding buyers after several sessions of negative trade, and the markets positioning ahead of the Fed who are locked in for their two day meeting. The DJI was up +0.2%, S&P500 gained +0.6% and the Nasdaq up +0.8%. Australian shares are expected to open cautiously today, awaiting the results of the RBA Meeting this afternoon, though some favour could spill over from the Wall Street performance overnight and the rise in commodities.
Gold prices ended the session marginally higher as investor jossle for positions ahead of this weeks US FOMC meeting.
Copper prices remained firm yesterday, as last week’s agreement by China copper smelters to cut output continues to propel prices. Dalian Iron ore prices rebounded on the tail of an improved data drop for China for Retail Sales and Industrial Production.
Brent Crude prices turned higher over the day , supported by optimistic demand prospects after the China Retail Sales and Industrial Production data, amidst lower crude exports reported from Saudi and Iraq.
| AUDUSD
Open today 0.6559 Yesterday’s Range 0.6551 / 0.6574 |
NZDUSD
Open today 0.6085 Yesterday’s Range 0.6078 / 0.6100 |
AUDNZD
Yesterday’s Range 1.0768 / 1.0787 |
| AUDEUR
Yesterday’s Range 0.6022 / 0.6035 |
AUDCNH
Yesterday’s Range 4.7223 / 4.7371 |
AUDGBP
Yesterday’s Range 0.5150 / 0.5160 |
We hope you have found our expertly curated MarketWatch analysis useful in navigating the ever-changing FX landscape. To enhance our services and make sure you receive the most relevant and timely insights we have recently made some exciting updates to our newsletter.
To continue receiving our curated MarketWatch insights, we kindly request you resubscribe to our mailing list here: https://bit.ly/46YKOdo
