Market Watch APAC – 20th February 2024
The Australian dollar is expected to hold firm today after posting a small gain yesterday, as expectations for further stimulus from China authorities, to boost their faltering economy, remain front and centre. The PBoC is expected to leave its 1yr benchmark loan prime rate on hold at 3.45% today while cutting its 5yr rate, currently 4.2%, by between 5 and 15 points, the latter of which influences their mortgage rates. We will see the meeting minutes from the RBA February get together released during out session today. The AUDUSD looks to butt up against further supply into the resistance at 0.6550’s. 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.
Wall Street was closed for Presidents Day holiday. Australian shares are set to open flat today, as investors hold out for corporate earnings and the release of the RBA Minutes later today.
Gold prices held small gains for the day as the US-dollar eased and the developments in the Middle East conflict stir up a preference for lustre metals.
Copper prices drifted lower as the market focused on the ailing property sector in China. The LME was down 0.6% at session close. The Dalian Iron ore contract slipped lower for the day as traders eyed off a cautious stance after inventories rose and steel margins remain weak.
Brent Crude prices posted small gains amid tensions continuing in the Middle East.
| AUDUSD
Open today 0.6540 Yesterday’s Range 0.6527 / 0.6552 |
NZDUSD
Open today 0.6150 Yesterday’s Range 0.6120 / 0.6152 |
AUDNZD
Yesterday’s Range 1.0632 / 1.0675 |
| AUDEUR
Yesterday’s Range 0.6056 / 0.6075 |
AUDCNH
Yesterday’s Range 4.7094 / 4.7207 |
AUDGBP
Yesterday’s Range 0.5174 / 0.5194 |
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