Marketwatch APAC

Market Watch APAC – 21^st May 2024

A tentative set of ‘risk’ markets has seen the antipodean currencies ease back from their overnight highs, though still consolidating the new ranges. Commodities gave up gains from Asia, but gold and copper have been the exception, bounding higher. The first cohort of Fed officials added comment to the need for inflation to retreat before considering any rate cuts from the FOMC and another slew of Fed speakers are expected to comment tonight. The AUDUSD opens the Asia session just behind the 0.6670’s  and still leans bullish, looking for the chance to regain 0.67-cents, as has been the case in the last few sessions. The RBA Minutes of the May meeting are due out today, along with the Westpac Consumer Confidence measure. Analysts will be reviewing the RBA Minutes to confirm the bank’s view that while inflation remains well above their target , they will be hesitant to start lowering rates any time soon. Support should prevail at 0.6645/55 for the day on any immediate pullback. The pair looks to be consolidating a new range between 0.6650 and 0.6750 on early technicals.

Wall Street indices were mixed for the day with the Nasdaq leading the charge as tech stocks advanced ahead of Nvidia’s highly anticipated earnings report and as investors once again ponder the scenarios for Fed interest rate cuts later this year. The S&P finished in the black but the Dow fell. The DJI ended down -0.5%, the S&P500 gained +0.05% and the Nasdaq was up +0.5% for the day. Australian shares are expected to open softer today after mixed commodity prices amidst lower crude, but higher gold and mixed metals.

Gold prices and ticked off another all-time high as traders look to the timing of Fed rate cuts later in the year and China’s stimulus measures lifting demand.

Copper prices rallied for another session spurred on by short covering and momentum speculators. Iron Ore prices were higher for the day as China authorities announce their latest support measures for the property sector.

Brent Crude prices eased as US Fed official look to hose down rate cut expectations, pointing to more signs of easing inflation before they would consider the possibility.