Market Watch APAC – 29th May 2024
A pick up in US Treasury yields has deflated the AUDUSD a tad and holds position awaiting the release of the Australian CPI data today. Consensus expects Australian inflation to ease to around 3.4% for April from 3.5% in March. Any signs of stubborn inflation may be another catalyst for the pair to retain its upward trajectory. Yesterday’s Retail sales provided enough momentum to lift the pair through 0.6660/70 for the Asia session, even though the release underwhelmed at +0.2%, just shy of the +0.4% expected. Trading is likely to remain choppy as it falls to the whim of external fundamentals like commodity prices, risk based sentiment from other markets and China data. For the trading day, any strength will search for resistance at 0.67-cents for the time being and a retreat will look for some support at 0.6620/25. Australian CPI data for April, expected to be +3.4%, will be the key focus for traders today.
Wall Street indices were mixed for the day, with the Nasdaq hitting an all time high over 17,000. The DJI registered a -0.6% loss, while the S&P500 gained +0.05% and the Nasdaq was up +0.6% for the day. Australian shares are expected to open lower today, while investors await the release of local inflation data this morning.
Gold prices advanced +0.3%, as investors revise their outlook for Fed interest rate moves later in the year, ahead of the key US inflation report due later this week.
Copper prices on the LME were up 1.9%/tonne encouraged by data out of China and slightly softer dollar during Asia session, though markets are mindful of ample supplies and rising production. Dalian Iron Ore prices slipped lower again, as traders re-assess demand for steel in China at this time of the year.
Brent Crude prices squeezed higher as expectations rose for OPEC+ to keep production curbs in place at their meeting next week.
| AUDUSD
Open today 0.6650 Yesterday’s Range 0.6643 / 0.6679 |
NZDUSD
Open today 0.6141 Yesterday’s Range 0.6138 / 0.6170 |
AUDNZD
Yesterday’s Range 1.0806 / 1.0833 |
| AUDEUR
Yesterday’s Range 0.6119 / 0.6141 |
AUDCNH
Yesterday’s Range 4.8252 / 4.8514 |
AUDGBP
Yesterday’s Range 0.5207 / 0.5221 |
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
