The AUDUSD has tracked risk appetite over the commencement of the week, with commodities tracking higher in the opening sessions and China’s better than expected Manufacturing PMI report along with the disclosure of a number of stimulus measures to boost their economy, all providing support to the antipodean currencies. The AUDUSD pair opens the Asia session defending the 0.67-cent level and looks to remain in a holding pattern ahead of the RBA Meeting decision later today, which is poised to go either way for a hike or pause. The market is looking for the RBA to pause, while a survey of economists slightly favours a 25bp hike. Earlier in the session, we look to the release of the Australian Housing data to entertain traders in the lead up to the central bank meeting. Rallies for the Aussie look initially to be contained to 0.6735/40 with buying interest emerging on dips to 0.6695.
Wall Street stocks posted another day of gains across the indices, as hopes continue to circulate for improved corporate earnings and a softer landing for the US economy. The DJI gained 0.3%, the S&P500 added 0.2% and the Nasdaq closed higher, gaining 0.2%% for the session. Australian shares look to open higher again today with an uptick in commodities, though investors may remain hesitant ahead of the RBA meeting later today.
Gold prices tracked higher, as the US-dollar slipped and confidence mounting that US inflation was heading in the right direction for the US Fed to end its tightening cycle soon.
Copper prices tracked higher on the LME as traders digest the latest announcements from Beijing to stimulate their economy. Iron Ore prices turned positive, as China’s pledged to support their economy by adopting measures to increase consumption, though lingering concerns for steel demand have been capping daily price gains.
Brent Crude Oil prices rallied higher, as traders continue to see optimism in the wake of tightening supply providing buoyant prices.