Marketwatch APAC

Daily Insights
December 20, 2023

Market Watch AU – 21st December 2023


The US-dollar advanced against the majors across the overnight sessions, most notably against the Sterling which fell sharply after the UK inflation release for November, dropping to 3.9% which was far lower than the economist expectations of 4.4%. From the US , existing home sales unexpectedly rose in November. The AUDUSD retreated from recent highs, as suggested and looked to test consolidation levels around support at 0.6720/25. While the Australian rates outlook remains at a ‘higher for longer’ scenario against a backdrop of looser policy ahead in the US, this could tempt investor flows away from the USD and favour the AUD to our relatively high yields. Aussie traders will look to buying opportunities on these dips and positioning for the pair to challenge 0.68-cents as the next resistance point.

The Wall Street rally ran out of steam, after all three indices hit their intraday highs and retreated late in the session. Rate cut optimism, that has been fueling the advance, tempered today and investors contemplated a softer landing and higher for longer interest rates scenario from the Fed. The DJI gave up -1.3%, the S&P500 fell -1.5% and the Nasdaq was down -1.5% by close.  Australian shares are expected to open lower today, as investors remain sidelined ahead of the US CPI data later this week.

Gold prices held steady, as markets await fresh US economic data later this week, for further clues as to the direction for the US Fed on interest rates next year.

Copper prices rose on China demand due to restocking of inventories, but gains were limited by a firmer US-dollar . Iron Ore futures on the Dalian exchange rose modestly again yesterday as traders monitor inventory levels and easing demand due to smelter maintenance ahead of winter restocking.

Brent Crude Oil prices remain firm, around $80/bbl, as markets remain cautious over global trade disruption arising from last week’s Red Sea incident, where tankers were attacked by Houthi forces.



Open today 0.6730

Yesterday’s Range 0.6725 / 0.6779


Open today  0.6248

Yesterday’s Range 0.6237 / 0.6298


Yesterday’s Range 1.0754 / 1.0838


Yesterday’s Range 0.6150 / 0.6191


Yesterday’s Range 4.8098 / 4.8426


Yesterday’s Range 0.5305 / 0.5354


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Economic Calendar

NZD - Credit Card Spending y/y
GBP - Public Sector Net Borrowing
CNY - Foreign Direct Investment ytd/y
GBP - CBI Realized Sales
CAD - Core Retail Sales m/m
CAD - Retail Sales m/m
USD - Final GDP q/q
USD - Unemployment Claims
USD - Final GDP Price Index q/q
USD - Philly Fed Manufacturing Index
USD - CB Leading Index m/m
USD - Natural Gas Storage
JPY - National Core CPI y/y
JPY - Monetary Policy Meeting Minutes

Market Indicators

Currency Pairs
Pair High Low
aud/usd 0.67789 0.67239
nzd/usd 0.62985 0.62501
aud/nzd 1.07999 1.07543
usd/jpy 144.098 143.264
usd/cad 1.33705 1.33113
eur/usd 1.09794 1.09296
gbp/usd 1.27298 1.26248
aud/eur 1.62598 1.61497
aud/jpy 97.4 96.616
Equities and Commodities
S&P 500 4737.93
DOW 37364.9
Nasdaq 100 16684.8
ASX200 7523.59
GOLD 2033.13
WTI 73.84

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.