Market Watch APAC – 6th March 2024
Overnight, the release of the US ISM Services data has come in under expectations and pushed the US-dollar lower against most of the majors. In particular it was the employment component that contracted and doesn’t bode well for the ADP Employment change and JOLTS releases tonight. These results gave the antipodean currencies, Aussie and Kiwi, a bit of a lift from session lows, but overall sideways within familiar ranges. Our data calendar sees the release of Australian Q4 GDP today, as well as Building Approvals for January. Markets are also preparing for the US Non-farm Payrolls and Powell’s Congressional Testimony , plus the ongoing China National People’s Congress that is reporting stimulus outcomes for their economy. US non-farm payrolls are tipped to soften to 200k from 353k. Along with favourable local data, the AUDUSD will be looking for a weaker US jobs report to spark momentum for a rally. Daily ranges are expected to remain contained initially, with any rallies stalling into 0.6545/50 and any further retracement lower , will look for the support at the 0.6450/80 zone.
Wall Street stocks dropped for the day, as major tech stocks eased and investors continue to position ahead of Fed Chair Jerome Powell’s congressional testimony and the US jobs data due out tonight. The DJI was down -1.0%, S&P500 shed -1.1% and the Nasdaq was down -1.9%. Australian shares are expected to open softer today led in part by softer energy commodities and investors remain cautious over iron ore and oil prices while continuing to monitor the pulse of China’s economic activity for further signs that could weigh on the mining sector.
Gold prices rally higher once again for the day, as investors sway their expectations that there will be a US rate cut by June and attracted safer haven flows away from the US-dollar due to the conflict in the Middle East.
Copper prices retreated, as investors remain attentive to outcomes from the China National People’s Congress taking place this week and await further data releases from the US on the state of their economy as well. Dalian Iron ore prices were range bound with near-date futures ending with modest gains, as investors mull over the latest economic targets arising from the China National Peoples Congress this week.
Brent Crude prices fell, as market skepticism prevails over whether China will be able to achieve their economic targets in the short-term. Brent settled at $82.04 / bbl, -0.9%.
| AUDUSD
Open today 0.6503 Yesterday’s Range 0.6478 / 0.6521 |
NZDUSD
Open today 0.6087 Yesterday’s Range 0.6071 / 0.6110 |
AUDNZD
Yesterday’s Range 1.0665 / 1.0695 |
| AUDEUR
Yesterday’s Range 0.5972 / 0.6000 |
AUDCNH
Yesterday’s Range 4.6716 / 4.7011 |
AUDGBP
Yesterday’s Range 0.5110 / 0.5132 |
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