Market Watch APAC – 24th April 2024
The US-dollar tumbled during the northern hemisphere sessions, after the US purchasing managers report missed expectations and showed business activity had expanded at its slowest rate this year. US Treasuries fell on both the 2yr and 10yr assets. Risk appetite has picked up for the day and US equities are gearing up for an encouraging earnings report window. The antipodean currencies have continued their going higher with the AUDUSD adding to its weekly gains and sporting some form of recovery. The AUDUSD momentum was aided by yesterdays manufacturing and services PMI release that shows a move towards economic growth rather than contraction. Locally we get the Australia release of Inflation figures that will be the last piece of important data for the RBA in updating its forecasts for the May meeting. Added to this, investors have dialed back their immediate concerns over developments in the Middle East. While all the attention will be on the CPI data today , traders will be looking to add positive news to the bullish momentum on the Aussie, with buyers on any dip to 0.6450’s and strength to nibble away at 0.6490/00.
Wall Street stocks ended higher for the day, after positive company earnings releases from top tier entities as investors remain focused on the performances of the major growth stocks and the health of the US economy. The DJI gained +0.7%, S&P500 gained +1.2% and the Nasdaq up +1.6%. Australian shares are expected to open higher following the Wall Street moves, while easing tensions in the Middle East are expected to add investor confidence, though attention will be drawn to the release of the CPI March quarter later this morning.
Gold prices steadied following recent falls as US dollar retreated and Middle East tensions appeared to have subsided somewhat.
Copper prices slipped on the LME, as speculative interests sought to take some profits after reaching a 2y high. The Dalian Commodity exchange Iron Ore futures fell further over the session, as investors see a softening in steel demand and wary of a lack of forthcoming stimulus from Beijing and increasing port side inventories.
Brent Crude prices squeezed higher, as the US-dollar retreated and traders became more confident that Middle East disruptions would be less likely a risk for the supply outlook.
| AUDUSD
Open today 0.6487 Yesterday’s Range 0.6441 / 0.6490 |
NZDUSD
Open today 0.5932 Yesterday’s Range 0.5903 / 0.5948 |
AUDNZD
Yesterday’s Range 1.0888 / 1.0936 |
| AUDEUR
Yesterday’s Range 0.6038 / 0.6066 |
AUDCNH
Yesterday’s Range 4.6743 / 4.7123 |
AUDGBP
Yesterday’s Range 0.5203 / 0.5232 |
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