Market Watch APAC – 28th May 2024
A public holiday in the US for Memorial Day and a Bank Holiday in Britain, have muted trading flows and interest overnight. A softer US-dollar for the day has seen the Aussie dollar strike gains through to the 0.6650/60 zone and is looking for further momentum reasons to advance through to 0.67-cents. Australian Retail Sales today might be the catalyst to spur the pair on to the next resistance level. Outside of that we should expect trading to be choppy as it falls to the whim of external fundamentals like commodity prices, risk based sentiment from other markets and China eco data. For the trading day, any strength will search for resistance at 0.67-cents for the time being and a retreat will look for some support at 0.6620/25. Australian Retail Sales for April are expected to be +0.2% for the month.
Wall Street was closed for the Memorial Day public holiday. Australian shares are expected to open higher today as commodity prices register positive gains and support the local mining and energy sectors, while investors await the release of inflation data later this week.
Gold prices rallied 1% to open the trading week, as investors revise their outlook for interest rate moves later in the year ahead of the key inflation report due later this week.
The LME was closed for the Bank Holiday. Dalian Iron Ore prices slipped lower as traders realise short term profits ahead of what is usually a slim demand period for steel in China at this time of the year.
Brent Crude prices rose in thin trading due to the public holidays in US and Britain, while traders ponder a downgrade in demand on the basis that interest rates will remain higher for longer in the US due to stubborn inflation.
| AUDUSD
Open today 0.6654 Yesterday’s Range 0.6621 / 0.6660 |
NZDUSD
Open today 0.6149 Yesterday’s Range 0.6111 / 0.6153 |
AUDNZD
Yesterday’s Range 1.0811 / 1.0849 |
| AUDEUR
Yesterday’s Range 0.6101 / 0.6136 |
AUDCNH
Yesterday’s Range 4.8088 / 4.8345 |
AUDGBP
Yesterday’s Range 0.5197 / 0.5217 |
