Marketwatch APAC

Daily Insights
August 1, 2023

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.

Economic Calendar

AUD - Cash Rate
AUD - RBA Rate Statement
USD - ISM Manufacturing PMI
USD - JOLTS Job Openings
NZD - Unemployment Rate
NZD - Employment Change q/q

Market Indicators

Currency Pairs
Pair High Low
aud/usd 0.66297 0.65267
nzd/usd 0.61395 0.60682
aud/nzd 1.08022 1.07516
usd/jpy 143.477 142.225
usd/cad 1.33485 1.3269
eur/usd 1.10077 1.09176
gbp/usd 1.27991 1.268
aud/eur 1.67331 1.65884
aud/jpy 94.897 93.588
Equities and Commodities
S&P 500 4519.7
DOW 35410
Nasdaq 100 15356.2
ASX200 7300.87
GOLD 1935.76
WTI 79.3

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.