Market Watch APAC – 19th April 2024
The latest release of the Australian Employment data came in a little more mixed than expected in March and gives the RBA room to hold off on rate cuts, as they reconsider the latest data. The unemployment rate is tracking below their earlier annual targets and the CPI release next week could mute their tightening bias and bring it back to neutral, for a chance of a rate cut, deeper in to the second half of the year. The AUDUSD traded firm in early overnight trading, but the fade extended in the US session as US-dollar rallied and US Treasury yields firmed. There are enough geopolitical tensions around that will continue to favour the US-dollar and drive it higher. The 0.6450’s level on the Aussie has been an important pivot in the last few months and will again be closely monitored for direction in to the weekend close. Day traders will remain attentive to intraday moves in risk assets and commodities, for inherent direction in the short-term.
Wall Street stocks were little changed, as investors digested the early release corporate earning reports and mulled over the latest comments from Fed officials, that point to the unlikely chance of a rate cut any time too soon. The DJI gained +0.1%, S&P500 down -0.2% and the Nasdaq slid -0.5%. Australian shares are expected to open softer today, as Wall Street offers no real clear direction and investor sentiment remains on the back foot hawkish Fed comments.
Gold prices up 1% for the day, as elevated tensions in the Middle East conflicts maintain safe haven interests for lustre metals.
Copper prices managed a gain of +2% on the LME, as traders and funds extended their buying interests. The Dalian Commodity exchange Iron Ore futures ended the day 3% higher supported by improving downstream demand for steel and hopes for further China economic stimulus.
Brent Crude prices settled little changed but under pressure, as traders contemplate mixed US economic data , US sanctions extending to Venezuela and Iran and the developments amidst tensions in the Middle East.
| AUDUSD
Open today 0.6421 Yesterday’s Range 0.6417 / 0.6456 |
NZDUSD
Open today 0.5902 Yesterday’s Range 0.5899 / 0.5933 |
AUDNZD
Yesterday’s Range 1.0863 / 1.0897 |
| AUDEUR
Yesterday’s Range 0.6024 / 0.6046 |
AUDCNH
Yesterday’s Range 4.6528 / 4.6788 |
AUDGBP
Yesterday’s Range 0.5158 / 0.5178 |
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