Market Watch AU – 7th February 2024
The AUDUSD gained and held above 0.65-cents after the RBA left rates on hold and flagged that they were still open to tightening further if conditions require. The RBA Governor pushed back on rate cut expectations during her press conference and reaffirmed the banks cautious note in their statement, as she emphasized that addressing inflation remains the priority. Further advances for the Aussie will be met with headwinds, Chinese eco data has been poor of late and geopolitical conditions persisting favour a flow to US-dollars should things deteriorate. For today we will continue to monitor the China equity markets for sentiment to waver towards a risk move higher. AUDUSD should find initial support at 0.6470/80 zone and resistance to continue at 0.6525/30 with day traders preferring to sell into strength at the moment.
Wall Street stock indices traded in a mixed fashion, as investors hashed out comments from the Fed as to when they will ‘pencil in’ the first rate cuts and scrutinized the latest earnings releases from major corporates. By end of day, the DJI was up +0.1% for the session, while the S&P500 eased by -0.06%, and the Nasdaq also down -0.4% during the session. Australian shares are looking to open higher today, after the Reserve Bank of Australia left rates on hold at their inaugural meeting for 2024.
Gold prices caught a bid today with investors positioning ahead of Fed officials commentary later in the week, as well as a pullback on the US-dollar and US Treasury yields.
Copper prices turned positive on the LME as the US-dollar eased and buoyed by latest efforts from China authorities to stabilize its markets. Dalian Iron ore futures traded lower, as traders continue to weigh up China demand as they tackle their property sector woes and a gloomy demand outlook.
Brent Crude prices posted daily gains, after the US Energy Agency warned on slowing crude oil production this year.
Open today 0.6523
Yesterday’s Range 0.6479 / 0.6525
Open today 0.6098
Yesterday’s Range 0.6047 / 0.6100
Yesterday’s Range 1.0690 / 1.0738
Yesterday’s Range 0.6031 / 0.6067
Yesterday’s Range 4.6695 / 4.6994
Yesterday’s Range 0.5167 / 0.5194
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