Marketwatch APAC

Market Watch APAC – 7^th May 2024

The US-dollar slipped against most of its G10 peers once again, with the exception of the USDJPY that regained ground after last weeks BoJ intervention. The AUDUSD has been benefiting from a lift in risk appetite and support for commodities in recent sessions and will look to the RBA Meeting today if it is to get a further lift from the commentary delivered by the Committee. Recent inflation figures surpassed forecasts and economists expect that this meeting will deliver no change in the Cash Rate. The AUDUSD continues with support initially at the 0.6550’s and strong resistance emerging in to the 0.6650/75 zone. China releases its April Foreign Exchange reserve figures today, which will be closely monitored for suggestions that Beijing may be selling down its US Treasuries position to support the Renminbi.

Wall Street stocks advanced higher again as investor maintain hope of a Fed rate cut later this year. The DJI rose +0.5%, while the S&P500 gained +1% and the Nasdaq added +1.2% for the session. Australian shares are looking to open slightly higher today, tracking Wall Street moves and await the RBA meeting outcome later today and what it could mean for the local interest rate outlook.

Gold prices turned higher today adding 1% for the session, as US-dollar slipped and Israel seemingly rejected a Hamas ceasefire proposal.

Copper prices added to last weeks gains. The Dalian Iron Ore futures price circling the $120/tonne as investor sentiment improves with the restocking of steel inventories following their Labour Day holidays.

Brent Crude prices settled just in the black for the day, as ceasefire agreements between Israel and Hamas seemed once again to elude international negotiators.