Market Watch APAC – 12th June 2024
A modest bounce in equities and base metals along with a slide lower in the US-dollar has helped the AUDUSD recover in the latter part of the off shore session, but releases in the US for May CPI and the FOMC meeting will attract the major attention near-term. No change to the policy rate is expected from the Central Bank, but the committee is expected to release its Summary of Economic projections, which is warranted to highlight the bank’s forward guidance for rates. Around the Asia session today we will look for regional data and Central bank meetings, including China CPI and PPI for May, to entertain traders and possibly add influence to risk sentiment. For the AUDUSD today, trading will remain cautious, with support looking to hold above 0.6550’s and rallies finding supply in to 0.6635/50 on any strength.
Wall Street stock indices were predominantly higher to day , but investors remain cautious ahead of tomorrow’s inflation release and the FOMC policy announcement. The S&P500 gained +0.3% and the Nasdaq rose +0.9% also, however the DJI was lower -0.3% for the day. Australian shares are looking to open lower today, weighed down by iron ore and commodity prices, as investors remain cautious ahead of the US inflation data later this week, though a firm commodities complex may offer some support to the mining and energy sectors.
Gold prices managed to reverse an earlier drop, as investors positioned ahead of the US inflation data and the results of the FOMC meeting.
Copper prices on the LME dropped, under pressure from a stronger dollar and rising stockpiles in China. Iron Ore prices on the Dalian Commodity Exchange were weighed lower as demand sentiment pressured the raw material and traders contemplated a depleted demand from China, along with proposals for carbon emission plans on the steel industry.
Brent Crude prices were up +0.4% by close after the Energy Information Administration raised its global oil demand forecast and market fears of oversupply have eased.
| AUDUSD
Open today 0.6607 Yesterday’s Range 0.6589 / 0.6613 |
NZDUSD
Open today 0.6144 Yesterday’s Range 0.6118 / 0.6150 |
AUDNZD
Yesterday’s Range 1.0749 / 1.0793 |
| AUDEUR
Yesterday’s Range 0.6122 / 0.6159 |
AUDCNH
Yesterday’s Range 4.7897 / 4.8088 |
AUDGBP
Yesterday’s Range 0.5174 / 0.5197 |
