Market Watch APAC – 3rd May 2024
The US-dollar continues to tumble, as US Treasury yields drop in the wake of the FOMC meeting earlier in the week. Also adding pressure is the lingering chance the BoJ implements some sort of currency intervention. In Australia today we await some second tier data in the form of Services PMI for April and Home Loan Value for March. Then later today, will be the US Payrolls report for April, and Factory Orders that will be closely watched by traders tonight. The AUDUSD is managing to consolidate above the 0.65-cent handle and trading familiar ranges between 0.6450 and 0.6650. For now the AUDUSD leans bullish and opens the Asia session holding above the short-term moving averages. Day traders and fast money funds will look to continue to buy into any strength but will be mindful of the US data releases ahead of the weekend.
Wall Street stocks finished the day higher as investors contemplate the aftermath of US Fed leaving rates on hold and adding that the next move will most likely be a cut in rates. A number of corporates are announcing their quarterly results which have been mixed of late. The DJI rose +0.9%, while the S&P500 gained +0.9% and the Nasdaq added +1.5% for the session. Australian shares are looking to open with small gains today, as investors await the RBA meeting next week and what it could mean for the local interest rate outlook.
Gold prices gave back its previous day gains, as investors pondered the latest US Fed commentary and returned to the notion that rates will remain higher for longer.
Copper prices slipped again for the session, as traders continue square off and take near term profits around three year highs, all the while expectations that physical demand remains weak in China. The Dalian Commodity exchange closed for the Chinese public holiday.
Brent Crude prices settled lower on rising inventories and the lesser chance of a quick turnaround in US interest rates any time soon.
| AUDUSD
Open today 0.6565 Yesterday’s Range 0.6514 / 0.6573 |
NZDUSD
Open today 0.5962 Yesterday’s Range 0.5915 / 0.5968 |
AUDNZD
Yesterday’s Range 1.0992 / 1.1029 |
| AUDEUR
Yesterday’s Range 0.6080 / 0.6126 |
AUDCNH
Yesterday’s Range 4.7151 / 4.7345 |
AUDGBP
Yesterday’s Range 0.5200 / 0.5242 |
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