Marketwatch APAC

Daily Insights
August 3, 2023

The AUDUSD softened further amidst continuing risk off exits as traders look for safety. US data continues to bolster optimism for a recovering US economy with US Private Payrolls coming in well over economist expectations, increasing by 340k in June. Investors are building confidence for a bold US Jobs report, Non-Farm Payrolls, on Friday. The AUDUSD seems decisively bearish after yesterdays one cent slide, with traders sights now on the 0.65-cent support as commodity prices and equities deteriorate overnight. A breach there would open up a retreat to the 0.6460 level, last seen in May. Any initial gains will be restricted to the previous psychological support at 0.66-cents. For our session today , markets will await the Australian Trade data for June to provide some directional guidance. Bank of England policy meeting tonight, where they are widely expected to raise rates by 25bp once again.

Wall Street indices suffered at the hand of investor nerves, as they digest the Fitch Ratings downgrade for the US and cautiousness ahead of further seasonal corporate earnings reports. The DJI lost -1%, the S&P500 closed lower -1.4% and the Nasdaq shed -2.2% for the session. Australian shares are set to open lower, tracking Wall Street markets, with investors rattled by the timing of the Fitch Rating downgrade to US debt and a pull back on tech stocks ahead of earnings announcements for Apple and Amazon.

Gold prices tumbled as investors position in favour of US-dollars, ahead of the US Non-farm payrolls on Friday night.

Copper prices closed down 1.7%. Dalian Iron Ore prices ended the day lower, though markets are measuring China’s latest policy guidelines and monitoring oversupply concerns.

Brent Crude Oil prices settled lower as traders digest the latest risk moves and stronger US-dollar, all the while US gasoline inventories fell more than forecast in a sign that demand may be starting to pick up over their driving season.

Economic Calendar

CHF - CPI m/m
GBP - Official Bank Rate
GBP - MPC Official Bank Rate Votes
GBP - Monetary Policy Summary
GBP - BOE Monetary Policy Report
GBP - BOE Gov Bailey Speaks
USD - Unemployment Claims
USD - ISM Services PMI

Market Indicators

Currency Pairs
Pair High Low
aud/usd 0.66094 0.65436
nzd/usd 0.61328 0.60658
aud/nzd 1.07969 1.07556
usd/jpy 142.878 141.548
usd/cad 1.3394 1.33274
eur/usd 1.10419 1.09255
gbp/usd 1.27835 1.26694
aud/eur 1.67445 1.66363
aud/jpy 93.928 93.199
Equities and Commodities
S&P 500 4531.43
DOW 35429
Nasdaq 100 15486
ASX200 7357.72
GOLD 1941.47
WTI 82.5

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.