Market Watch APAC – 17th April 2024
The US-dollar maintained its gains overnight following Fed Chairman Powell’s comments that the committee will wait longer than previously expected to invoke a cut in interest rates. Added to this has been escalating tensions in the Middle East that have doubled down on risk currencies and assets since the weekend. The USDJPY has pushed higher and the risk currencies have been pressured lower, the AUDUSD breaching the 0.64-cent support in trading overnight. Stronger than expected economic releases for China yesterday, particularly, their Q1 GDP, up 1.6% v 1.2% previously, have offered some support to the Aussie Dollar. With AUDUSD technical’s bearish and RSI’s falling, next intra-day support comes at 0.6380/90’s, while any positive moves for the pair, will find day traders and fundies selling in to that strength.
Wall Street stocks traded a mixed session with US Treasury yields gaining and investors heading the tensions brewing in the Middle East. The DJI gained +0.2%, S&P500 down -0.2% and the Nasdaq slid -0.1%. Australian shares are expected to open lower again today, following commodities lower and the comments from Fed Chair Powell that rates will likely remain higher for longer.
Gold prices ground their way higher with elevated tension in the Middle East conflicts maintaining safe haven interest for lustre metals.
Copper prices gave back previous session gains as China factory data weakened the expectation for demand. The Dalian Commodity exchange saw Iron ore prices fall across the day, as hopes of further China stimulus and a better demand outlook has not been forthcoming and having investors reconsider.
Brent Crude prices finished the day near flat, down just 8 cents/bbl , as investor positioning from the Middle East tensions over the weekend were revised lower.
| AUDUSD
Open today 0.6402 Yesterday’s Range 0.6390 / 0.6447 |
NZDUSD
Open today 0.5881 Yesterday’s Range 0.5869 / 0.5907 |
AUDNZD
Yesterday’s Range 1.0883 / 1.0914 |
| AUDEUR
Yesterday’s Range 0.6018 / 0.6067 |
AUDCNH
Yesterday’s Range 4.6444 / 4.6789 |
AUDGBP
Yesterday’s Range 0.5139 / 0.5181 |
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