Market Watch APAC – 14th May 2024
The AUDUSD traded around the ‘pivot’ of 0.66-cents yesterday and found support from improving commodity price interests, but markets remain in a holding pattern as they await the outcomes of US CPI release and Australian Jobs report to provide some confidence for risk markets to traverse higher. Today in Australia we look to the Australian Federal Budget, which will be monitored closely for inflationary outcomes, due to the tax cut promises and infrastructure spending announcements. The Treasury is expected to report a budget surplus of $9.3bn for 2024, mostly from the good fortune of Iron Ore exports and prices. Possible tensions between US and China as the US administration looks to apply potential tariffs on China will not be supportive for the antipodean currencies. The AUDUSD opens the Asia session again above 0.66-cents, with noted strong resistance at 0.6650/75 zone prevailing. Support seen overnight at 0.6575/85 zone and continuing behind at 0.6550’s in the short term.
Wall Street indices spent another session in a holding pattern with the S&P500 barely changing for the day , as investors await the US CPI data due out later this week, where concerns remain as to whether it is returning to target levels quickly enough. The DJI fell -0.2%, the S&P500 was down just -0.02%, but the Nasdaq gained 0.3% for the session. Australian shares are poised to open lower today, as investors hold out for the US inflation read to reaffirm interest rate expectations later in the year for both the RBA and the Fed.
Gold prices dropped 1% in the opening sessions of the week, as investors awaited fresh data for the direction and timing of Fed rate cuts this year.
Copper prices attracted fresh attention and were up 1.9% on the LME, as traders looked to easing interest rate conditions to stimulate global growth. Dalian Iron Ore futures prices strengthened after China authorities added news of further bond issuances to support their economy.
Brent Crude reversed higher clearing Friday’s losses as signs of improving demand from China and US supported crude outlook.
| AUDUSD
Open today 0.6608 Yesterday’s Range 0.6586 / 0.6628 |
NZDUSD
Open today 0.6017 Yesterday’s Range 0.6001 / 0.6033 |
AUDNZD
Yesterday’s Range 1.0948 / 1.0997 |
| AUDEUR
Yesterday’s Range 0.6116 / 0.6136 |
AUDCNH
Yesterday’s Range 4.7678 / 4.7977 |
AUDGBP
Yesterday’s Range 0.5259 / 0.5279 |
