Marketwatch APAC

Daily Insights
May 14, 2024

Market Watch APAC – 15th May 2024


The AUDUSD regains session losses to resume in Asia above the 0.66-cent level, after the US-dollar retreated following Powell’s comments to ‘cool down’ the higher than predicted US PPI release. He still is confident that inflation will decline and bullish on the overall US economy. The rally in Copper and base metals has underpinned the AUD gains for the day, as well as noted carry trade flows, particularly AUDJPY. The Federal budget delivered energy and rent relief and though monetary policy has been loosened, the additional spending from the budget is not expected to jolt the RBA into raising rates, more a hold for higher and longer solution. Australia release of the local Wage Price Index Q1 today will draw some trader attention, but US CPI tonight will be the main event. The AUDUSD opens the Asia session again above 0.66-cents, with noted strong resistance at  0.6650/75 zone prevailing. Support seen overnight at 0.6575/85 zone again and continuing behind at 0.6550’s in the short term.

Wall Street indices all moved higher for the day reassured by Fed Chair Powells comments to suggest rate cuts are coming and as the market awaits the latest read for US Inflation due out tonight. The DJI was up +0.3%, the S&P500 gained +0.5%, and the Nasdaq gained 0.7% for the session. Australian shares should open on the front foot today, but investors will hold out for the US inflation read to reaffirm interest rate expectations later in the year for both the RBA and the Fed, plus digesting the latest Federal Budget implications for inflation.

Gold prices grabbed back the losses from the previous day, after US PPI implied inflation was still high and as investors awaited the CPI data for clearer direction and timing of Fed rate cuts this year.

Copper prices attracted further attention rallying higher on arbitrage trading and fund based interest.

Brent Crude prices fell after US data implied stubborn inflation would keep rates higher for longer, while supply constraints from Middle East tensions and wildfires in Canada provided some support.



Open today 0.6627

Yesterday’s Range 0.6580 / 0.6628


Open today  0.6041

Yesterday’s Range 0.5995 / 0.6042


Yesterday’s Range 1.0960 / 1.0994


Yesterday’s Range 0.6109 / 0.6128


Yesterday’s Range 4.7675 / 4.7988


Yesterday’s Range 0.5253 / 0.5278

Economic Calendar

AUD - Wage Price Index q/q
EUR - French Final CPI m/m
EUR - Flash Employment Change q/q
EUR - Flash GDP q/q
EUR - Industrial Production m/m
EUR - EU Economic Forecasts
GBP - 10-y Bond Auction
EUR - German 30-y Bond Auction
CAD - Housing Starts
CAD - Manufacturing Sales m/m
USD - Core CPI m/m
USD - Core Retail Sales m/m
USD - CPI m/m
USD - CPI y/y
USD - Empire State Manufacturing Index
USD - Retail Sales m/m
USD - Business Inventories m/m
USD - NAHB Housing Market Index
USD - FOMC Member Barr Speaks
USD - Mortgage Delinquencies
AUD - CB Leading Index m/m
USD - Crude Oil Inventories
USD - FOMC Member Bowman Speaks
USD - TIC Long-Term Purchases
AUD - RBA Assist Gov Hunter Speaks
JPY - Prelim GDP q/q
JPY - Prelim GDP Price Index y/y

Market Indicators

Currency Pairs
Pair High Low
aud/usd 0.66277 0.65786
nzd/usd 0.60426 0.59934
aud/nzd 1.09887 1.09338
usd/jpy 156.779 156.223
usd/cad 1.36899 1.36327
eur/usd 1.08256 1.07666
gbp/usd 1.25928 1.25092
aud/eur 1.63692 1.6311
aud/jpy 103.697 103.091
Equities and Commodities
S&P 500 5248.69
DOW 39572.5
Nasdaq 100 18328.7
ASX200 7770.38
GOLD 2358.03
WTI 78.4

This document is for information purposes only and does not constitute any recommendation or solicitation to any person to enter into any transaction or adopt any trading strategy, nor does it constitute any prediction of likely future movements in exchange rates or prices or any representation that any such future movements will not exceed those shown on any illustration. All exchange rates and figures appearing are for illustrative purposes only. You are advised to make your own independent judgment with respect to any matter contained herein.