Global Markets Rebound Amid Mixed Data and USD Strength

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Forex Market 

USD Gains Ahead of CPI & Central Bank Speakers 
The US dollar strengthened broadly through the New York session before easing later in the day as risk appetite improved. The Australian dollar traded within a relatively tight range and settled near the middle of that band heading into the local session, with buying interest still noted ahead of the lower psychological support level and offers layered higher above recent highs.
The Japanese yen weakened sharply, with USD/JPY surging after comments from Japan’s Prime Minister expressing caution about further rate hikes, pushing the pair to fresh highs before stabilising.
The euro and pound initially dipped against the stronger dollar but later recovered, with sterling outperforming into the London rate set. The New Zealand dollar also rebounded off its lows into the afternoon, while USD/CAD edged higher earlier in the session before momentum slowed.
Overall, price action across the majors remained relatively contained, with late-session dollar softness allowing several currencies to reclaim ground into the close.

General Market

Wall Street

  • Dow Jones +0.8% → 49,188
  • S&P 500 +0.7% → 6,887
  • Nasdaq +0.9% → 22,837
  • VIX -6.7% → 19.60

Asia-Pacific

  • ASX 200 0.0% → 9,022
  • Shanghai Comp +0.9% → 4,117
  • Nikkei +0.9% → 57,321

Europe

  • FTSE 0.0% → 10,681
  • DAX 0.0% → 24,986
  • CAC +0.3% → 8,519

 

Headlines to Watch

Australia

January CPI release – focus on trimmed mean inflation and whether price pressures are easing faster than the RBA anticipates
RBA Governor Bullock – any shift in tone on inflation risks and rate expectations

Europe

Euro Area CPI – implications for the ECB’s policy trajectory if inflation remains sticky

United States

Fed speakers: Barkin & Musalem
Market focus on policy tone and signals around the rate path following stronger consumer confidence data
With AUD/USD trading within a contained range and holding above key support near the 0.7000 level, near-term direction may hinge on today’s Australian CPI outcome and central bank rhetoric across the US and Europe.
Currency PairMid-market Rate
AUD/USD0.7059
AUD/NZD1.1835
AUD/JPY110.06
AUD/CNY4.8584
AUD/EUR0.5996
AUD/GBP0.5231
AUD/HKD5.5228

 

 

 

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