Market Watch APAC – 5th Jun 2024
A surprising downturn in business activity in the US, as evidenced by latest data, has rekindled investor expectation for an earlier rate cut by the Fed, sending the US dollar and treasury yields lower, though many markets have had mixed results for the day. US Stocks recovered from an earlier selloff at the start of the session, while oil , copper and gold all slipped and dragged risk and commodity currencies off their daily highs. The AUDUSD has had a busy range as risk sentiment jolted the pair back to 0.6630’s in Europe session after trading at 0.6690’s earlier in Asia day. Ahead today we look to the Australian May Judo Bank PMI and Q1 GDP, expected +1.2%yoy , while also on the radar will be the China Caixin non-manufacturing report for May and then later tonight will be US Initial Jobless Claims, Trade Balance and the ISM non-manufacturing PMI for May. For the AUDUSD today, any strength will run in to the 0.6690/00 zone again and any decline will look for initial support at 0.6600/10’s.
Wall Street stocks were higher over the day amidst a choppy session as softer than expected US Labour market data rekindled expectations for a more imminent rate cut from the Fed. The DJI was up +0.4%, while the S&P500 gained just +0.1% and the Nasdaq also gained +0.1% for the day. Australian shares are looking to open a tad lower today with softer commodities weighing on the mining and energy sectors.
Gold prices dropped more than 1% for the day as investors positioned ahead of the US Labour releases due later this week.
Copper prices on the LME, declined back below the psychological $10,000 level, driven by lack-lustre demand from China. Dalian Iron Ore prices keep declining, as prospects for China demand appear more unlikely, particularly with high portside inventories as they are.
Brent Crude prices slipped lower again today, as traders consider the impact from a boost to production from OPEC+ in to a market that is already showing signs of softening demand.
| AUDUSD
Open today 0.6649 Yesterday’s Range 0.6631 / 0.6698 |
NZDUSD
Open today 0.6177 Yesterday’s Range 0.6156 / 0.6198 |
AUDNZD
Yesterday’s Range 1.0753 / 1.0813 |
| AUDEUR
Yesterday’s Range 0.6103 / 0.6139 |
AUDCNH
Yesterday’s Range 4.8048 / 4.8563 |
AUDGBP
Yesterday’s Range 0.5192 / 0.5228 |
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