Marketwatch APAC

Daily Insights
January 2, 2024

Market Watch AU – 3rd January 2024


The AUDUSD got a lift during Asia yesterday, bolstered by a improvement in the latest release for China Caixin Manufacturing PMI for December, which added to risk appetite for the session. This however was short-lived and overnight the pair has been driven lower on higher US-dollar and US Treasury yields, as traders temper expectations for Fed rate cuts this year. The move back below 0.68-cents sees the pair navigate to the major support at 0.6750. These moves are probably exacerbated somewhat by thinner trading volumes, as markets slowly return from holiday mode. Day traders will watch these levels closely for any further weakness, as markets gear up for the US Non-farm payrolls on Friday. The initial support level is seen at 0.6750 with further weakness allowing a move to 0.6725/35 behind, while initial supply should be seen on a move to 0.6780’s and 0.6810 behind.

Wall Street finishes the opening session of the year lower, as US Treasury yields ended higher with investors revising their expectations for US rate cut dot plot this year. The DJI posted a +0.08% gain, while the S&P500 lost -0.6% and the Nasdaq dropped -1.7% for the day.  Australian equities are set to start the day lower, weighed down by energy shares on the back of softer oil prices and tempering rate moves this year from central banks.

Gold prices had rally to start the year buoyed by expectations of possible rate cuts from the Fed this year and geopolitical concerns continuing with the added concerns for the latest attacks on shipping through the Red Sea.

Copper prices finished the day steady as positive China data countered stronger US-dollar moves. Iron Ore futures on the Dalian exchange continue rallied on strong Manufacturing PMI data out of China and added expectations for restocking by steel makers ahead of their holiday period.

Brent Crude Oil slipped lower on US interest rate nerves and a tempering of how the Red Sea tensions on shipping will disrupt supply.



Open today 0.6761

Yesterday’s Range 0.6757 / 0.6839


Open today  0.6252

Yesterday’s Range 0.6249 / 0.6328


Yesterday’s Range 1.0770 / 1.0832


Yesterday’s Range 0.6163 / 0.6200


Yesterday’s Range 4.8317 / 4.8531


Yesterday’s Range 0.5347 / 0.5374


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Economic Calendar

JPY - Bank Holiday
EUR - Spanish Unemployment Change
CHF - Manufacturing PMI
EUR - German Unemployment Change
USD - FOMC Member Barkin Speaks
USD - ISM Manufacturing PMI
USD - JOLTS Job Openings
USD - ISM Manufacturing Prices
USD - Wards Total Vehicle Sales
USD - FOMC Meeting Minutes

Market Indicators

Currency Pairs
Pair High Low
aud/usd 0.68391 0.6757
nzd/usd 0.63206 0.6249
aud/nzd 1.08321 1.07813
usd/jpy 142.217 141.095
usd/cad 1.33339 1.32283
eur/usd 1.10435 1.09406
gbp/usd 1.27598 1.26109
aud/eur 1.62074 1.61283
aud/jpy 96.714 95.838
Equities and Commodities
S&P 500 4750.61
DOW 37748.1
Nasdaq 100 16574.3
ASX200 7569.36
GOLD 2058.64
WTI 70.51

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.