Marketwatch APAC

Daily Insights
July 28, 2023

The US-dollar traded higher for the day after better than expected results from economic data releases which showed the economy was more robust despite the Fed’s monetary policy. Preliminary reading for US Q2 GDP expanded to 2.4% , up from 2% and 1.8% expected. US Durable goods bounced to 4.7% for June and the Initial Jobless claims for the week declined below expectations. All in all, investors are contemplating that the FOMC will not be done with quite just yet and pushing back on dovish policy expectations. The AUDUSD traded a volatile day, after rallying through 0.68-cents in Asia only to be dumped lower in offshore trading as the US-dollar regained its strength. Looking ahead today, we have the Aust Retail Sales (Jun) and Aust Producer Price Index (PPI) for Q2, that is expected to have declined from 5.2% to 3.9%, welcome news for the RBA if it does. For traders, the retreat of the Aussie looks to challenge further supports at 0.67-cents and 0.6685 behind, while rallies will be likely be contained to 0.6800/10 once again, should it manage to hurdle first line resistance at 0.6735/40.

Wall Street finished the session lower as US Treasury yields rallied following the news that the BoJ would allow longer term interest rates to rise. The DJI fell -0.7%, the S&P500 lost -0.6% and the Nasdaq closed lower, shedding -0.6% for the session as well. Australian shares look to open lower following its big cousin, Wall Street, moves overnight, weighed down by a fall in commodity prices and as investors await the RBA decision due out next week.

Gold prices reversed lower after several days of gains, weighed down by a stronger US-dollar and an uptick in US Treasury yields.

Copper prices eased further today, with a stronger US-dollar and as traders fail to see any follow through on Beijing promises to support their economic recovery. Iron Ore prices dropped for the day, as traders seek more context over the detail for China’s pledge to support their economy.

Brent Crude Oil prices regained previous session losses, garnishing support from tighter supply following OPEC production cuts and a flicker of hope that demand will return from China.

Economic Calendar

JPY - Monetary Policy Statement
JPY - BOJ Outlook Report
EUR - German Prelim CPI m/m
JPY - BOJ Press Conference
USD - Employment Cost Index q/q
USD - Core PCE Price Index m/m
CAD - GDP m/m
USD - Revised UoM Consumer Sentiment

Market Indicators

Currency Pairs
Pair High Low
aud/usd 1.50994 1.48965
nzd/usd 1.63369 1.61569
aud/eur 1.65624 1.63559
aud/gbp 1.93256 1.90577
aud/jpy 94.218 91.784
aud/nzd 1.08548 1.07955
usd/jpy 141.074 138.057
usd/cad 1.32485 1.31999
eur/usd 1.10474 1.09435
gbp/usd 0.7835 0.77582
Equities and Commodities
S&P 500 4586.9
DOW 35516.8
Nasdaq 100 15760.6
ASX200 7451.05
GOLD 1960.16
WTI 79.78

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.

About Michael Buck


Michael Buck is part of GPS’ trade desk in Perth, Australia. He has worked in foreign exchange specializing in derivatives in London, New York and Australia. He has been both a trader at bank and has developed pricing and risk software solutions.