Market Watch APAC – 22nd May 2024
The AUDUSD opens the Asia session in familiar levels and still leans bullish if the consolidation around the 0.6650 remains firm. Gold eased and USDCNH posted gains overnight, adding inherent pressure on the AUD for the offshore sessions. The RBA Minutes of the May meeting were of little consequence to the Aussie during our session yesterday, but did manage to deflate some enthusiasm for the risk pair, as traders squared out of speculative long positions. The Minutes noted that the risks around the RBA forecasts were “balanced” which would suggest that the committee would continue a “higher for longer” rate stance. The RBA doesn’t expect inflation to return to the target band until late 2025, which would suggest that rate cuts wont be on the table till then either. The Westpac Consumer Confidence measure was received as disappointing also, down 0.3% in May, as consumers continue to be squeezed by high interest rates. Trading wise today, we look for support to prevail at 0.6645/55 on any immediate pullback and any strength to find initial resistance at 0.6705/10.
Wall Street stocks posted gains for the day as investors continue to look through the latest economic data and Fed official commentary for clues on the timing of rate cuts later this year. The DJI ended up +0.2%, the S&P500 gained +0.3% and the Nasdaq was up +0.2% for the day. Australian shares ended mixed yesterday and are expected to open a little firmer today as some commodity prices cast support to the mining sector.
Gold prices eased from recent highs, but saw buying interests on the dip as investors look for safe-haven quality and expectations of the Fed easing rates later this year.
Copper prices eased -0.7% but still holds above $10,800/ton. Iron Ore prices were continued to trend higher for the day as prospects improve for ongoing demand to be supported by China initiatives.
Brent Crude prices slipped lower by 1% as the market considers lingering inflation issues delivering the prospect of higher interest rates for longer and weighing on consumer demand.
| AUDUSD
Open today 0.6666 Yesterday’s Range 0.6647 / 0.6679 |
NZDUSD
Open today 0.6094 Yesterday’s Range 0.6088 / 0.6113 |
AUDNZD
Yesterday’s Range 1.0906 / 1.0943 |
| AUDEUR
Yesterday’s Range 0.6125 / 0.6153 |
AUDCNH
Yesterday’s Range 4.8182 / 4.8394 |
AUDGBP
Yesterday’s Range 0.5234 / 0.5253 |
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
