Marketwatch APAC

Daily Insights
July 20, 2023

The AUDUSD opens in Asia today under 0.68-cents, as the US-dollar rebounds and traders position ahead of the Australian Employment data for June due out today. Expectations are for 15k jobs added and an unemployment rate remaining at 3.6%. The pair reflects the cautious mood from markets, as we await the next round of data to formulate expectations from analysts on how central banks will react in coming meetings, including our own RBA. They have highlighted that the Employment cycle is one of the key barometers for their policy decision going forward. Also due today is the PBoC interest rate decision, where there has been mounting pressure for them to ease policy. Headlines have been mixed over whether policy makers are ready to add stimulus to their economy and pessimism towards their realty sector, which is in turn weighing on the AUDUSD, as a key export partner with China. Trading wise today, we look to AUDUSD support at 0.6715 on further deterioration, with resistance at 0.6840 should we see gains back above 0.68-cents.

Wall Street closed higher, shrugging off poor second quarter earnings reports from Goldman Sachs and looking through to better performances from smaller institutions in the banking sector. The DJI was up 0.3%, the S&P500 closed higher, gaining 0.2% and the Nasdaq also closed up 0.03% for the session. Australian shares look to open flat today, with key June Employment data out later in the morning, that could offer clues as to how the RBA will approach the decisions at their next meeting in August.

Gold prices traded near recent highs, as investors maintain bets on the Fed moving to a pause on rate hikes soon.

Copper prices eased further on the LME as investors continue to assess the impact of slower global growth and demand from China, along with a stronger US-dollar on the day. Iron Ore prices gave back some of its previous session gains as traders contemplate the introduction of further stimulus from Beijing.

Brent Crude Oil prices drifted lower as traders preferred to take profits during earlier session gains prompted by tighter US crude supply and suggestions that China will stimulate its flagging economic growth. Brent closed lower by just 17 cents to $79.46/bbl.

Economic Calendar

GBP - CPI y/y
USD - Housing Starts

Market Indicators

Currency Pairs
Pair High Low
aud/usd 0.6837 0.6790
nzd/usd 0.6344 0.6261
aud/nzd 0.0012 0.0011
usd/jpy 139.1300 137.71
aud/cnh 7.1968 7.1676
usd/can 1.3243 1.3168
eur/usd 1.3125 1.3029
Equities and Commodities
NASDAQ 15,809.7500
S&P500 4,579.7500
OIL 75.8500
GOLD 1,978.7900

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.