Market Watch APAC – 20th May 2024
The AUDUSD retreated back to test the support at 0.6650’s as the US-dollar found initial support in the overnight sessions. A sharp rally in the commodities complex helped to reinvigorate the AUDUSD pair off its session lows and advance towards high 0.6680’s before the weekend close. Looking ahead this week RBNZ is meeting to propose their latest monetary policy and interest rate decision, the PBoC is set to announce its Loan Prime Rate (LPR) fixing and Minutes of the latest Fed meeting are all expected to take centre stage. The Bank of Japan also has a busy week for data releases. Should divergent central bank policy remain between the RBA and the US Fed, AUD should remain favourable for investors. The AUDUSD opens the Asia session at similar levels in the 0.6680’s once again, and still leans bullish with the chance to regain 0.67-cents. Support should prevail at 0.6645/55 for the day on any immediate pullback. The pair looks to be consolidating a new range between 0.6650 and 0.6750 on early technicals.
Wall Street indices saw the Dow close over 40,000 for the first time and other indices posted gains for the week, as further evidence from data releases supported a rate cut from the Fed this year. The DJI ended up +0.3%, the S&P500 gained +0.1% and the Nasdaq was near unchanged at -0.07% for the day. Across the week, all three indices have posted meaningful gains. Australian shares are expected to open higher today after investors continue to digest the implications for Fed rate cuts later this year and commodity prices add support the mining sector.
Gold prices advanced for the day as traders look to the timing of Fed rate cuts later in the year.
Copper prices rallied higher as China announced their latest measures to support their economy and pushed the base metal to its highest since March 2022. Iron Ore prices were higher for the day as China authorities announce their latest support measures for the property sector.
Brent Crude prices posted weekly gains as the pulse of demand improved in the major consumers of China and the US.
| AUDUSD
Open today 0.6686 Yesterday’s Range 0.6649 / 0.6701 |
NZDUSD
Open today 0.6130 Yesterday’s Range 0.6102 / 0.6139 |
AUDNZD
Yesterday’s Range 1.0892 / 1.0923 |
| AUDEUR
Yesterday’s Range 0.6132 / 0.6161 |
AUDCNH
Yesterday’s Range 4.8094 / 4.8475 |
AUDGBP
Yesterday’s Range 0.5255 / 0.5274 |
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