Market Watch APAC – 23rd February 2024
The AUDUSD has cleared interest through the 0.6570’s and found next resistance of 0.6590/95 zone and will be looking to clear there for a chance at further gains to 0.6620/25. Most of these gains have been mad on the prevailing softness of the US-dollar this week and modest gains in commodity prices. The emergence of a carry trade with the divergence of interest rate policy between the US Fed and RBA have also become a focal point for investors. The lingering concerns over further stimulus to the Chinese economy will be a restrictive fundamental on the currency’s gains short term. On the downside, any retreat will look for 0.65-cents and 0.6480 behind, where a failure to hold could allow for a retest of the 0.6435/45 support. Analysts will be looking ahead to the Australian January CPI report due out next week which is expected to see inflation on the hotter side as upward pressures from house rents, petrol prices and utility bills are all still lingering.
Wall Street stocks rallied to new highs following a standout forecast for Nvidia revenue and helped other growth stocks post gains. The DJI was up 1.1%, S&P500 up 1.5% and the Nasdaq gained 2.9%. Australian shares will look to roll over the Wall Street enthusiasm and open higher today, plus added support from higher energy and tech sector shares.
Gold prices retreated from their highs as the latest US Jobless claims data drop showed resilience in the economy and investors await further data releases to guide their expectations for US Fed dot plot on interest rates. Gold eased -0.1% to $2022.74/ounce.
Copper prices firmed slightly on a softer US-dollar during the trading session. Dalian Iron ore prices continue to trade lower amid continuing concerns over China demand.
Brent Crude prices held gains and added smalls for the session, up just 0.4%% on the day, as concerns about supply tightness prevail.
| AUDUSD
Open today 0.6557 Yesterday’s Range 0.6540 / 0.6595 |
NZDUSD
Open today 0.6195 Yesterday’s Range 0.6176 / 0.6218 |
AUDNZD
Yesterday’s Range 1.0571 / 1.0611 |
| AUDEUR
Yesterday’s Range 0.6047 / 0.6072 |
AUDCNH
Yesterday’s Range 4.7104 / 4.7447 |
AUDGBP
Yesterday’s Range 0.5173 / 0.5202 |
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