Marketwatch APAC

Daily Insights
July 21, 2023

The AUDUSD jumped yesterday after the June Employment data added to the expectations of further hikes in interest rates by the RBA, forcing bond yields higher. The AUDUSD traded to near 0.6850 resistance only to be returned back under 0.68-cents following US-dollar strength, on the tail of a better US Jobless Claims report overnight, that suggests inflationary pressures remain elevated. Yesterday, the PBoC set the Renminbi reference rate higher than expected and raised the threshold for offshore borrowings, though it did choose to keep its commercial bank loan prime rates steady. On the markets today, while the AUDUSD holds above short term support, further challenges to the 0.6840/50 zone will be eyed by day traders.

Wall Street indices were mixed overnight, with the Dow recording a gain on the tail of Johnson and Johnson forward guidance on earnings being above expectations, while the Nasdaq was weighed down by the quarterly results from Tesla and Netflix. The DJI was up 0.5%, the S&P500 closed lower, -0.7% and the Nasdaq also closed down -2.1% for the session. Australian shares look to open softer today, after the June Labour reports keep the rate hike expectations firmly on track for the next meeting of the RBA.

Gold prices eased off their recent highs, as investors returned to expectations of the Fed to keep rates higher for longer, though analysts still foresee one more hike only from the Central Bank before they pause, which are helping to underpin lustre metal prices.

Copper prices steadied with the US-dollar strength, as hopes circulate that China will announce additional stimulus to their economy. Iron Ore prices recovered as traders contemplate the introduction of further stimulus from Beijing, particularly to their ailing property sector.

Brent Crude Oil prices ground their way higher for the session, prompted by tighter US crude supply with lower reports of crude inventories and suggestions that China will stimulate its flagging economic growth, but investors remain cautious.

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Economic Calendar

GBP - Retail Sales m/m
CAD - Core Retail Sales m/m
CAD - Retail Sales m/m
AUD - Employment Change
AUD - Unemployment Rate
USD - Unemployment Claims

Market Indicators

Currency Pairs
Pair High Low
aud/usd 0.6820 .6751
nzd/usd 0.6315 0.6226
usd/jpy 139.9900 138.7700
aud/nzd 0.0012 0.0011
usd/cnh 7.2368 7.1920
usd/usd 1.3193 1.3156
gbp/usd 1.3044 1.2869
Equities and Commodities
FTSE100 7,646.0500
DOW30 35,225.1800
SP500 4,534.8700

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.