Market Watch APAC – 12th April 2024
The release of US Producer Prices overnight has soothed inflation concerns, as US Fed officials roll out the rhetoric that they are in no rush to cut rates. The rise in US PPI was slower than expected and the Weekly Jobless Claims was also more modest than anticipated by analysts. Major banks have adjusted their rate cut forecasts as well shifting the chance of the first cut back to September with a 60% chance. Global interest rate differentials are still favouring the US-dollar. Over in Europe the ECB left rates on hold but flagged a cut was coming soon. The AUDUSD has kept its head above 0.65-cents for the day and traded back over 0.6535 as risk assets caught a bid and the US-dollar moderated, but day-traders and momentum funds have been seen selling into the fade. Nothing on the local calendar today, will have traders looking to the China Import/Export numbers and Trade Balance for any further signs the antipodeans can absorb these levels. Open interest on Asia equity markets and performances of the JPY and CNH will also draw some attention.
Wall Street stocks recovered after a significant sell off, as US PPI data signaled that US inflation remains in a cooling trend. The DJI added +0.2%, S&P500 up +0.8% and the Nasdaq gained +1.5%. Australian shares are expected to open cooler today as investors digest and re-assess the time lines for rate cuts later this year.
Gold prices picked up some of the previous day’s losses after a softer than expected release on US Producer Prices rekindled hopes for US rate cuts later this year.
Copper prices continued to trend lower with the LME down -0.3% at close. The Dalian Commodity exchange saw Iron ore prices gain slightly, still trading on hopes that China will forthcoming with stimulus to its construction industry.
Brent Crude prices eased over the session, but fears of re-directed Middle East tension have kept crude near $90/bbl.
| AUDUSD
Open today 0.6538 Yesterday’s Range 0.6502 / 0.6552 |
NZDUSD
Open today 0.5997 Yesterday’s Range 0.5969 / 0.6014 |
AUDNZD
Yesterday’s Range 1.0883 / 1.0913 |
| AUDEUR
Yesterday’s Range 0.6054 / 0.6099 |
AUDCNH
Yesterday’s Range 4.7214 / 4.7523 |
AUDGBP
Yesterday’s Range 0.5188 / 0.5212 |
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