Market Watch APAC – 26th February 2024
The AUDUSD has started the week in positive fashion after closing out Friday with a marginal gain. This scenario is supported by the overall risk rally, as equity markets continuing to strike new highs and with carry trade demand emerging. US Treasury yields have begun to ease as markets and analysts revise their expectations of when the first US rate cut will come as US Fed officials commentary, adds warning to any optimistic tone. So the AUDUSD pair continues to find resistance in the 0.6575/80 area and notes the 0.6600/05 zone behind, while to 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. Markets will be looking ahead to the Australian January CPI report due out on Wednesday this 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. Over in New Zealand, they are looking to announce their cash rate at the latest meeting on Wednesday, which is expected to be no change. Continuing US Fed commentary along with a number of economic releases, will also have traders on their toes for any hints to the dot plot for Fed rates.
Wall Street stocks rallied to new highs, with all three benchmarks pegging weekly gains and the S&P500 and DJI making record highs. The DJI was up +0.2%, S&P500 up +0.03% and the Nasdaq gained +0.3%. Australian shares are expected to open higher today, taking the lead from global equity bourse performances, but remain cautious for the local inflation data, due out on Wednesday.
Gold prices managed to eke out weekly gains aided by a softer US-dollar and ongoing tensions in the Middle East providing safe haven demand.
Copper prices eased slightly on Friday, while Nickel prices gained on further sanctions applied to Russia supply. Dalian Iron ore prices set a weekly decline amid continuing concerns over China demand, though there was some buoyancy on Friday after a train accident in Brazil sparked concerns for a supply disruption.
Brent Crude prices dropped 3% on Friday as expectations for a Fed rate cut were pushed out by a couple of months.
| AUDUSD
Open today 0.6562 Yesterday’s Range 0.6550 / 0.6580 |
NZDUSD
Open today 0.6199 Yesterday’s Range 0.6181 / 0.6211 |
AUDNZD
Yesterday’s Range 1.0575 / 1.0606 |
| AUDEUR
Yesterday’s Range 0.6055 / 0.6075 |
AUDCNH
Yesterday’s Range 4.7181 / 4.7422 |
AUDGBP
Yesterday’s Range 0.5173 / 0.5192 |
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