Explore the world.

Assess underlying market conditions and fundamentals in the world's major economies.

World
Global
Americas
United States
Canada
Mexico
Europe
Euro Area
United Kingdom
Asia Pacific
China
Japan
Australia

Stay ahead.

Follow the biggest stories in markets and economics in real time.

Analysis
Blog
Views
Calendar

Subscribe

Get insight into the latest trends and developments in global currency markets with breaking news updates and research reports delivered right to your inbox.

After signing up, you will receive regular newsletters from Corpay, and may unsubscribe at any time. View Corpay’s Privacy Policy

Daily Market Briefing, Asia Pacific

08 Mar 2023

Policy divergence

• Higher for longer. Markets continue to bolster their US rates outlook. Others are at a different point. The Bank of Canada paused overnight.• US curve inversion. The jump in rate expectations has moved the US yield curve further into negative territory. The curve has a strong record of picking US downturns.• AUD sub $0.66. Deeply negative rate differentials are a AUD headwind, but the high terms of trade is an offsetting factor. Relatively calmer markets overnight. US equities consolidated, while bond yields ticked up further and were once again led by the front-end of the curve. The US 2yr...

Read More Read More
07 Mar 2023

Hawks in the Fed nest

• Hawkish Fed. Chair Powell pointed to rates rising even higher than previously thought, with the door to larger hikes still open.• Market repricing. US rate expectations have risen, supporting the USD. While the outlook for the RBA has been pared back following tweaks to its guidance.• AUD slump. The diverging RBA and Fed outlooks has weighed on the AUD. The shift in thinking can keep the AUD under pressure near-term. Market attention was on US Fed Chair Powell’s Congressional Testimony overnight, and he didn’t disappoint. In line with our thinking, which we have highlighted over the past few days,...

Read More Read More
06 Mar 2023

RBA nearing the end?

• ECB repricing. Hawkish comments reinforced expectations the ECB could raise rates aggressively over future meetings. This supported the EUR.• Fed in focus. US Fed Chair Powell speaks tonight. We think the run of US data should see Chair Powell reiterate that the Fed has more work to do.• Another RBA hike. RBA expected to raise rates another 25bps today. But will it tinker with its forward-looking policy guidance? A quiet start to the week, though there were some divergences across asset markets with the underlying theme of central banks continuing to raise rates to fight inflation still front-of-mind. Following...

Read More Read More
05 Mar 2023

China disappointment

• China targets. China’s 2023 growth target was a little lower than expected. Fiscal support also looks set to be more restrained than anticipated.• Risk sentiment. Equities rose on Friday, but the China developments, and ‘hawkish’ rhetoric from Fed Chair Powell could weigh on risk appetite this week.• AUD pressure. RBA widely expected to hike another 25bps. But we think there is a risk its forward-looking rate guidance is adjusted. Market attention remains on bond markets. The uptrend in global yields paused for breath on Friday, with the US 10yr falling by ~10bps to end the week back below 4%....

Read More Read More
02 Mar 2023

Rates still adjusting

• Higher yields. Markets continue to adjust interest rate expectations higher with inflation pressures showing limited signs of abating.• USD rebound. The larger lift in US bond yields has boosted the USD. Equity markets are looking increasingly complacent to the macro landscape.• AUD crosscurrents. Relative interest rate differentials are a AUD headwind. But the high level of commodity prices is an underlying support. The upswing in bond yields has continued with markets coming around to the view that interest rates will need to keep moving higher and stay at very elevated levels for some time to slow growth and (hopefully)...

Read More Read More

About

Contact

Data and information on this website is provided “as is” and for informational purposes only. Information on the website does not bind Corpay in any way; nor is it not intended as advice, a recommendation or an offer or solicitation for the purchase or sale of any financial products. Data and other information are not warranted as to completeness or accuracy and are subject to change without notice. All charts or graphs are from publicly available sources, or our proprietary data. Nothing in this material should be construed as investment, financial, tax, legal, accounting, regulatory or other advice or as creating a fiduciary relationship. Corpay disclaims any responsibility or liability to the fullest extent permitted by applicable law, for any loss or damage arising from any reliance on our use of the data in any way. You should contact your Corpay sales representative for clarification on the range of financial instruments available in your jurisdiction. Copyright Cambridge Mercantile Corp. 2022.