Market Watch APAC – 23rd April 2024
The US-dollar was lifted by US-Treasury yields in overnight trading. The AUD was one of the G10 peers that managed to still find gains, as risk sentiment improved across equites and Middle East tensions appeared to subside. As was suggested earlier in the week, the 0.6450’s level on the AUDUSD has been an important pivot in the last few months and will continue to attract attention for near term direction on the pair. Day traders have been preferring to sell in to the fade, but further strength could see shorts unwind and accelerate to 0.6470/80. Locally today on the economic front we get the Australia Judo Bank manufacturing, Services and Composite PMI’s for April. Looking ahead analysts will be waiting for Wednesday’s release of Australian Inflation figures that will be the last piece of important data for the RBA in updating its forecasts for the May meeting. Lower than expected figures could see markets bring forward the first anticipated rate cut for the RBA.
Wall Street stocks ended higher for the day, as investors leaned favourably into a busy week of company earnings releases that are expected to offer an incite in to the state of the US economy. The DJI gained +0.7%, S&P500 gained +0.9% and the Nasdaq up +1.1%. Australian shares are expected to open higher following the confidence of its Wall Street cousin, while easing tensions in the Middle East expected to offset any drag from mining and energy shares.
Gold prices fell more that 2% over the day as investors withdrew safe haven positions, while Middle East tensions appeared to subside somewhat.
Base metals, including Copper, prices slipped on the LME, as the US-dollar made gains. The Dalian Commodity exchange Iron Ore futures slipped lower for the session as traders become wary of a lack of forthcoming stimulus from Beijing and increasing port side inventories.
Brent Crude prices settled lower as traders became more confident that Middle East disruptions would be less likely a risk from the on going conflict.
| AUDUSD
Open today 0.6450 Yesterday’s Range 0.6410 / 0.6455 |
NZDUSD
Open today 0.5919 Yesterday’s Range 0.5883 / 0.5928 |
AUDNZD
Yesterday’s Range 1.0864 / 1.0914 |
| AUDEUR
Yesterday’s Range 0.6013 / 0.6055 |
AUDCNH
Yesterday’s Range 4.6558 / 4.6805 |
AUDGBP
Yesterday’s Range 0.5178 / 0.5230 |
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