Market Watch APAC – 1st May 2024
The US-dollar advanced as markets await the conclusion of the US FOMC meeting, which extends over two days this week, and is expected to deliver a no change on interest rates at present, but also adding cautious guidance from the committee on future rate cuts. This added to a disappointing March Retail Sales print in Australia yesterday has pushed the AUDUSD back below the 0.65-cent big figure. Retail Sales printed at -0.4% v an expected +0.2%. Risk markets have soured in overnight sessions, seeing equities, commodities and CNH all weaker. For the AUDUSD now it has turned bearish with RSI’s falling and the pair sliding below many of the daily moving averages. So the AUDUSD will see traders watch the 0.6450/75 zone for initial support and any strength will require a breach of 0.6560’s to draw further interest to the topside. The outcomes of the Fed meeting will be the answer to next moves on risk currencies and assets.
Wall Street stocks turned lower as investors digested rising labour costs and deteriorating consumer confidence ahead of the US Fed meeting outcomes tonight. The DJI dropped -1%, S&P500 fell -0.8% and the Nasdaq lost -1%. Australian shares are looking to open on the back foot today following indications from US economic data releases that limit the likelihood of a US rate cut soon, plus softer commodity prices weighing on the mining and energy sectors.
Gold prices fell 1.2% for the day, as the US dollar rose , though central bank demand for bullion and geo-political nerves have underpinned the slide.
Copper prices slid lower for the session, down -1.8%, as indications of slower manufacturing activity growth in China coupled with a stronger dollar, dented demand. Across the month however, the base metal had its best performance in three years The Dalian Commodity exchange Iron Ore futures fell with Steel prices ahead of the Chinese public holiday, but there is still optimism that their property sector can improve the outlook.
Brent Crude prices dropped 1% against a stronger US-dollar and a rise in US Crude production.
| AUDUSD
Open today 0.6473 Yesterday’s Range 0.6472 / 0.6569 |
NZDUSD
Open today 0.5888 Yesterday’s Range 0.5886 / 0.5980 |
AUDNZD
Yesterday’s Range 1.0972 / 1.1002 |
| AUDEUR
Yesterday’s Range 0.6062 / 0.6128 |
AUDCNH
Yesterday’s Range 4.6954 / 4.7563 |
AUDGBP
Yesterday’s Range 0.5181 / 0.5230 |
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