Market Watch APAC – 27th May 2024
The Aussie dollar picked up some buying interest on the dip through 0.66-cents on Friday, as investors revise their expectations on interest rate differentials between the RBA and the Fed. Analyst are starting to look ahead to this week’s Australian Retail Sales tomorrow and April CPI report, due Wednesday, mulling over the quarterly data and how it will likely tilt the RBA in its interest rate policy guidance. From their meeting minutes, any sign of a pick-up in household spending may reignite speculation of a rate hike. Also to watch will be comments from RBA Chief Economist Sarah Hunter on Friday, that will follows the release of this weeks data and possibly contextualize how the Central Bank will react to these latest releases. For the AUDUSD, any strength will find initial resistance at 0.6650’s for the time being and a break down of the 0.66-figure would rekindle further correction to 0.6550/60 zone. A public holiday in the US for Memorial Day, will likely mute trading activity today.
Wall Street ended the week on a firm note after news of an improving outlook on US inflation and positioning ahead of the long weekend. The DJI registered a +0.1% gain, the S&P500 gained +0.7% and the Nasdaq was up +1.1% for the day. Australian shares are expected to open on the front foot today as commodity prices register positive gains and support the local mining and energy sectors.
Gold prices marked gains for the day against the US-dollar as investors revise their outlook for interest rate moves later in the year.
Copper prices eased for another session, as investors reassess physical demand outlooks from leading consumer China. Iron Ore prices held on to recent gains as traders digest the impacts of the latest stimulus initiatives from China.
Brent Crude prices rose on Friday but registered an overall decline for the week, as traders ponder a downgrade in demand on the basis that interest rates will remain higher for longer in the US.
| AUDUSD
Open today 0.6639 Yesterday’s Range 0.6593 / 0.6636 |
NZDUSD
Open today 0.6116 Yesterday’s Range 0.6088 / 0.6126 |
AUDNZD
Yesterday’s Range 1.0819 / 1.0840 |
| AUDEUR
Yesterday’s Range 0.6096 / 0.6114 |
AUDCNH
Yesterday’s Range 4.7853 / 4.8196 |
AUDGBP
Yesterday’s Range 0.5195 / 0.5209 |
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
