Market Watch APAC – 7th June 2024
The AUDUSD holds within familiar ranges yesterday, as the US-dollar retreats against the G10 currencies offered some support and the EURUSD gained after the ECB eased its policy rate by 25bp to 4.25%. Markets are expecting to open in Asia on the front foot with a modest pick up in risk sentiment. On the data calendar will be the Reserve Bank of India rate decision, expected to be a hold at 6.5% and China Trade figures to entertain traders. The main event tonight will be the US Non-Farm Payrolls for May, with the unemployment rate expected to remain steady at 3.9%. For the AUDUSD today, trading will remain cautious, any strength finding resistance at the 0.6685/00 zone again and declines will look for initial support at 0.6610/25’s area.
Wall Street stocks were mixed for the day with the Nasdaq and S&P losing ground, while the Dow managed to remain in the black. The DJI was up +0.08%, while the S&P500 lost -0.1% and the Nasdaq fell -0.1% also. Australian shares are looking to open flat today, as investors remain cautious ahead of the US Non-farm payrolls tonight though a firm commodities complex may offer some emphasis to the mining and energy sectors.
Gold prices added to yesterday’s gains as investor positioned ahead of the US Jobs release tonight and hoping a softer than expected result, could bring forward expectations for a rate cut from the Fed. Prices were up 0.8% by close.
Copper prices on the LME recovered with optimism that central bank rate cuts will stimulate demand, after the ECB eased their cash rate by 25bp, and the market hopes others will follow soon. Dalian Iron Ore prices reversed up after market attention shifted to portside inventories and expectations for restocking ahead of a China holiday.
Brent Crude prices were up 2% by close after the ECB cut their rate by a quarter percent and the market hoped the Fed may have room to do so soon, plus OPEC+ rhetoric that they could revise the latest output agreement, if need be.
| AUDUSD
Open today 0.6666 Yesterday’s Range 0.6634 / 0.6683 |
NZDUSD
Open today 0.6199 Yesterday’s Range 0.6174 / 0.6215 |
AUDNZD
Yesterday’s Range 1.0732 / 1.0757 |
| AUDEUR
Yesterday’s Range 0.6097 / 0.6136 |
AUDCNH
Yesterday’s Range 4.8168 / 4.8489 |
AUDGBP
Yesterday’s Range 0.5195 / 0.5218 |
We hope you have found our expertly curated MarketWatch analysis useful in navigating the ever-changing FX landscape. To enhance our services and make sure you receive the most relevant and timely insights we have recently made some exciting updates to our newsletter.
To continue receiving our curated MarketWatch insights, we kindly request you resubscribe to our mailing list here: https://bit.ly/46YKOdo
