Marketwatch APAC

Daily Insights
July 27, 2023

The AUDUSD has dragged its way to the highs of 0.67-cents across Asia and overnight trading sessions. Resistance , as expected has emerged at the 0.6800 level.  Technicals favour further advance through these levels, but news today will determine immediate direction. The focus for Australia will be on the Q2 CPI report this morning, where economists expect inflation to have slowed for the June quarter, which could lean investors to consider interest rates have peaked. Also, positioning ahead of the Fed rate announcement tonight will influence the Asia session activity, in as much as where the market expects Fed Chair Powell’s comments to land in his accompanying statement. For traders today, any reversal could find first support at 0.6750’s, while resistance at 0.68-cents continues with further supply at the 0.6840/50 level behind.

Wall Street indices traded higher today, once again driven by tech sector, as investor enthusiasm for AI and earnings reports expectations fuel the run, all the while traders position for the outcome of the Fed latest meeting tonight. The DJI was up 0.1%, the S&P500 closed higher 0.3% and the Nasdaq also closed higher 0.6% for the session. Australian shares look to open higher once again today, with commodity shares in the limelight on the tail of China’s pledge for stimulus, while traders  remain cautious over local inflation data releases and Fed interest rate announcements later tonight.

Gold prices inched higher, as investors look through the likelihood that they raise rates once more tonight and expect the FOMC to indicate an end to its tightening policy going forward.

Copper prices added  1.8% today, spurred on by Beijing’s suggestions for support to bolster their economy. Iron Ore prices traded higher for the day, as traders welcomed China’s pledge for more stimulus to support their struggling economy and particularly the property sector .

Brent Crude Oil prices posted further gains today, driven by optimism of China stimulus measures, along with tighter supply conditions in the marketplace.

Economic Calendar

AUD - CPI q/q
AUD - Trimmed Mean CPI q/q
AUD - CPI y/y
USD - Federal Funds Rate
USD - FOMC Statement
USD - FOMC Press Conference

Market Indicators

Currency Pairs
Pair High Low
aud/usd 0.6791 0.67283
nzd/usd 0.62345 0.61819
aud/eur 1.64395 1.62739
aud/gbp 1.91836 1.89883
aud/jpy 95.722 94.42
aud/nzd 1.09216 1.08492
usd/jpy 141.182 139.921
usd/cad 1.32378 1.31717
eur/usd 1.11066 1.10377
gbp/usd 1.29604 1.28754
Equities and Commodities
GOLD 1971.33
WTI 78.91
DOW 35497
S&P 500
Nasdaq 100

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.