Market Watch APAC – 21st February 2024
The US-dollar softened further in offshore trading after the PBoC cut its 5yr rate yesterday, by 25bp to 3.95%, the largest since the reference rate was introduced in 2019, and spurred additional hopes that they will offer further stimulus to underpin its property sector. The AUDUSD plodded higher on market optimism for further global growth, touching 0.6570’s overnight as the US-dollar has softened , particularly against the Yen, which is being closely monitored by the BoJ lately. The AUDUSD has managed to plough through the initial supply over the 0.6550’s and will be looking to challenge the next resistance at 0.6580/95 zone if momentum prevails. Any retreat will look for 0.65-cents and 0.6480 behind, where a failure to hold could allow for a retest of the 0.6435/45 support.
Wall Street resumed from its long weekend and saw stocks lower, weighed down by fading optimism that central banks will be cutting rates any time soon. Also hampering Wall Steet was a dip in Nvidia ahead of its earnings report. The DJI was down -0.2%, S&P500 down 0.7% and the Nasdaq fell -1.3%. Australian shares are set to open heavy today, as investors mull over the release of the RBA Minutes that suggested any interest rate relief was still some time away.
Gold prices rallied higher as the US-dollar eased and investors turned to the release of the US Fed Minutes for clues on the timing for interest rate cuts later this year.
Copper prices moved higher for that day underpinned by a retreating US-dollar and a flicker of global optimism after the PBoC cut its 5yr rate, the main contract that references mortgage rates in China. The Dalian Iron ore contract traded lower again as traders remained concerned over the recovery in demand for steel in the leading consumer China.
Brent Crude prices settled -1.5% lower, as concerns about global demand offset prices support pertaining to the Middle East conflicts.
| AUDUSD
Open today 0.6549 Yesterday’s Range 0.6521 / 0.6579 |
NZDUSD
Open today 0.6164 Yesterday’s Range 0.6129 / 0.6191 |
AUDNZD
Yesterday’s Range 1.0614 / 1.0649 |
| AUDEUR
Yesterday’s Range 0.6058 / 0.6079 |
AUDCNH
Yesterday’s Range 4.7018 / 4.7341 |
AUDGBP
Yesterday’s Range 0.5183 / 0.5210 |
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