Market Watch APAC – 28th February 2024
The AUDUSD traded in a tight range yesterday ahead of the data releases through to the end of this week. AUDUSD pair continues to stall on any rallies, with AUDJPY sellers adding to the pressure after Japan CPI release for January, came in stronger than expected at 2.2% yoy. The JPY also gained against the USD but has pared back some of those in the US session. Today we get Australian January CPI report, which is expected to see inflation on the hotter side as upward pressures from house rents, petrol prices and utility bills are all still lingering. The Annual CPI is expected around 3.6% yoy. Also due to drop is the Q4 Construction Work Done, with expected 0.8% down from previous 1.3%. The NZD on guard today ahead of the RBNZ rate announcement and expected to be a Hold, but there could be some market disappointment if they offer a muted hawkish tone. Continuing US Fed commentary along with a number of economic releases, will also have traders on their toes for any hints to the dot plot for Fed rates.
Wall Street indices were once again trading in independently, as investors prepared for the release of inflation data and a mix of other economic releases that they hope will provide further clues as to when the US Fed may look to start cutting rates. The DJI was down -0.5%, S&P500 was down -0.1% and the Nasdaq was up +0.1%. Australian shares are expected to track the global bourses from overnight, as investors await the local inflation data, due out today, while a glimmer of optimism for a recovery in Chinese steel demand may support local mining shares.
Gold prices remained subdued ahead of comments due from a number of Fed officials and the release of inflation data to come.
Copper prices rallied for the first time this week with traders looking to next weeks annual parliamentary meeting in China for a hope of further stimulus to their economy. Dalian Iron ore prices managed small gains as a glimmer of optimism returned for demand recovery in China, though the immediate outlook remains a constraint for robust rallies.
Brent Crude prices squeezed out a small gain for the session, with OPEC said to be considering an extension to their output cuts into the second quarter of the year.
| AUDUSD
Open today 0.6544 Yesterday’s Range 0.6525 / 0.6558 |
NZDUSD
Open today 0.6171 Yesterday’s Range 0.6151 / 0.6178 |
AUDNZD
Yesterday’s Range 1.0592 / 1.0631 |
| AUDEUR
Yesterday’s Range 0.6014 / 0.6041 |
AUDCNH
Yesterday’s Range 4.7047 / 4.7287 |
AUDGBP
Yesterday’s Range 0.5147 / 0.5171 |
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