Market Watch APAC – 4th April 2024
The AUDUSD drives higher after a surprise US March ISM report and holds gains from the session. The US-dollar and US Treasury yields responded lower to the US ISM Non-manufacturing miss, and remarks from both Fed Chairman Powell and FOMC voter Bostic only added to the bearish tilt, as they re-iterated it will be likely and appropriate to start cutting rates “at some point this year”. The AUDUSD has followed risk assets and commodities higher in the latter part of the overnight sessions and find itself butting up against resistance at nearby 0.6570’s which will test the momentum of the ‘relief rally’. Australian data releases today will include the Building Approvals for Feb (exp 3.0%) and Judo Bank PMI’s, while macro influences from US Weekly Claims and further US Fed Speakers will be noted for further risks. The AUDUSD will be looking to the performance of gold and iron ore and further stimulus response from China authorities to underpin the momentum through to 0.6590’s, otherwise look to see the pair decline back to the 0.6480’s.
Wall Street stock indices ended the day in mixed fashion, as the US data for ISM eased further in March, suggesting inflation is slowing, but not sufficient to consider the US Fed will be able to cut rates too soon. The DJI was lower -0.1%, S&P500 gained +0.1% and the Nasdaq finished higher by +0.2%. Australian shares are expected open higher today, after the softer US services data and Fed official comments that still table rate cuts sometime later this year .
Gold prices rallied 0.5% after Fed Chair Powell’s comments that there is no material change to the ‘picture’ of economic policy this year. Bullion prices hit $2,294.99 during the offshore session.
Copper prices edged higher on the LME in part due to the softening US-dollar. Dalian Iron ore prices advanced for the day as discussions for stimulus to the China economy provide optimism for the base metal demand. The exchange will be closed for the next two days due to the Tomb Sweeping holiday in China.
Brent Crude prices finished the day higher as traders considered supply disruptions from a worsening geopolitical landscape, however a surprise lift in US Crude inventories moderated some of the impact.
| AUDUSD
Open today 0.6565 Yesterday’s Range 0.6504 / 0.6570 |
NZDUSD
Open today 0.6009 Yesterday’s Range 0.5953 / 0.6011 |
AUDNZD
Yesterday’s Range 1.0903 / 1.0940 |
| AUDEUR
Yesterday’s Range 0.6035 / 0.6064 |
AUDCNH
Yesterday’s Range 4.7213 / 4.7633 |
AUDGBP
Yesterday’s Range 0.5173 / 0.5194 |
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