Global Markets Rebound as Risk Sentiment Improves; AUD/USD and NZD/USD Hit Fresh Highs

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Forex Market 

AUD Firms as Risk Sentiment Improves; USD Regains Late Strength 
Risk sentiment improved overnight following strong gains on Wall Street and easing geopolitical concerns after comments from U.S. President Trump at the Davos meeting. The AUD initially benefited from the risk-on tone, trading within a tight range before settling slightly lower late in New York as USD strength re-emerged.
The NZD rose to fresh multi-month highs, while the euro and sterling weakened during Trump’s speech before stabilising into the New York close. The USD finished stronger across majors despite softer U.S. yields.

General Market

Wall Street

  • Dow Jones: +1.3% → 49,120
  • S&P 500: +0.4% → 6,825
  • Nasdaq: +1.1% → 23,209
  • VIX: -7.2% → 18.64

Asia-Pacific

  • ASX 200: -0.4% → 8,783
  • Nikkei: -0.4% → 52,775
  • Shanghai Comp: +0.1% → 4,117

Europe

  • FTSE: +0.1% → 10,138
  • DAX: -0.6% → 24,561
  • CAC: +0.1% → 8,069

 

Headlines to Watch

New Zealand
  • Card Spending (Dec): Retail and consumer trends to gauge domestic demand recovery.
  • Net Migration (Nov): Labour supply and economic activity impact.
Japan
  • Trade Balance (Dec): Export-import dynamics amid global trade fluctuations.
Australia
  • Unemployment Rate (Dec): Employment growth expected to rise +25k; unemployment likely steady at 4.3%.
United Kingdom
  • Public Sector Net Borrowing (Dec): Budgetary position and fiscal outlook.
  • CBI Retailing Reported Sales (Jan): Retail sentiment indicator amid seasonal trends.
European Union
  • ECB Meeting Minutes (Dec): Insights into monetary policy and euro volatility.
United States
  • Initial Jobless Claims (Jan 17): Labour market health indicator.
  • Core PCE (Q3): Key inflation measure; guides Fed policy expectations.
  • GDP (Q3): Growth momentum and economic performance.
  • Personal Consumption (Q3): Consumer demand trends.
  • Personal Spending (Oct & Nov): Expected solid growth (+0.5% m/m for Nov), shaping Q4 outlook.
Currency PairMid-market Rate
AUD/USD0.6755
AUD/NZD1.1574
AUD/JPY106.97
AUD/CNY4.7074
AUD/EUR0.5785
AUD/GBP0.5032
AUD/HKD5.2669

 

 

 

 

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