Market Watch APAC – 19th June 2024
The US dollar retreats versus EUR and risk currencies, as US retail sales for May land below expectations and highlighting concerns for consumer exhaustion. The trend in sales growth has been slowing and may raise the chances for the Fed to cut rates later this year. The spillover of the softer US-dollar has given the Aussie dollar a bit of a boost back into the mid-ranges of 0.66-cents overnight. Yesterdays RBA decision to keep rates on hold at 4.35% was well telegraphed in advance and the accompanying statement re-affirms their preference to wait and see for further data. For the AUDUSD, technicals have resumed a bullish lean and trades back above the short-term indicators. Risk appetite in markets may take a breather ahead of the US Juneteenth holiday which will see US markets shut. Day traders will look to support to edge up to the 0.6610/15 zone on any pullback and gains to keep ‘chipping away’ at supply through 0.6665/85 on any strength.
Wall Street stocks found investor interest following the softer than expected US Retail Sales report and US Fed officials acknowledgement that inflation is receding, but called for patience from bankers for the commencement of a rate cut. The S&P500 was up +0.3% and the DJI gained +0.2%, while the Nasdaq posted a gain of just +0.05% for the day. Australian shares are expected to trade flat at the open today, as investors digest the commentary from the RBA meeting yesterday, while some positive moves in commodity prices may lend support to the mining and energy sectors.
Gold prices ground higher for the day, following the release of the US Retail Sales figures that raises the opportunity for the Fed to cut rates later this year, as US Treasury yields decreased at the same time.
Copper prices rebounded as the US-dollar retreated across the session. Iron Ore prices on the Dalian Commodity Exchange closed the day higher though off its peaks as traders locked in profits following suggestions that there could be controls over steel output in the Provence of Fujian in China.
Brent Crude prices finished the day higher as concerns resurface over supply, stemming from disruptions as a result of Middle East and European conflicts.
| AUDUSD
Open today 0.6656 Yesterday’s Range 0.6601 / 0.6657 |
NZDUSD
Open today 0.6144 Yesterday’s Range 0.6098 / 0.6148 |
AUDNZD
Yesterday’s Range 1.0778 / 1.0847 |
| AUDEUR
Yesterday’s Range 0.6155 / 0.6199 |
AUDCNH
Yesterday’s Range 4.7996 / 4.8409 |
AUDGBP
Yesterday’s Range 0.5200 / 0.5242 |
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
