CNY

• Positive trends. A run of better than anticipated US data supported the USD. AUD drifted lower. NZD underperforms after yesterday’s RBNZ meeting.• Macro news. RBNZ points to rate hikes later this year. But markets already factoring that in. Australian jobs report in focus today. Will unemployment lift? Global Trends It was a positive night for US markets with equities (S&P500 +0.6%), bond yields (+3bps across the curve), and the USD rising. EUR dipped towards ~$1.1780, USD/JPY tracked the lift in US bond yields (now ~154.80), and GBP remained on the backfoot (now ~$1.3499). The AUD drifted a bit lower...

• Choppy markets. Intra-session swings overnight. Positive steps between US/Iran help sentiment. AUD & NZD tick a bit higher in quiet trading.• Macro events. RBNZ today. No change in rates expected. New forecasts released. AU wages out today ahead of the monthly jobs report tomorrow. Global Trends Markets were choppy overnight with intra-session swings translating to only limited net changes. For example, after falling by nearly 1% at the open on the back of lingering AI uncertainty, the US S&P500 clawed its way back into positive territory (+0.1% over the day). In bonds, US yields edged a fraction higher (+1-3bps...

• US CPI. Cooling US inflation helped stabilise risk sentiment. US bond yields dipped. USD tread water, as did the NZD. AUD drifted a bit lower on Friday.• Event radar. US holiday tonight. Lunar New Year started. RBNZ meets this week (Weds). US GDP (Fri night AEDT) & AU jobs data also out (Thurs). Global Trends There was a mixed performance across markets at the end of last week with encouraging US inflation data in the driver’s seat. US equities stabilised on Friday after the previous sessions tech/AI-led selloff. Nevertheless, the S&P500 still recorded its 4th, albeit small, decline in...

• US data. US jobs report supported sentiment. This & ‘hawkish’ comments by RBA’s Hauser helped AUD outperform. AUD at levels last traded in Feb ’23.• Rate repricing. Markets factoring in another RBA hike by August. Relative interest rates are AUD supportive. But has it moved up too fast? Global Trends There was a more positive tone across markets overnight with better-than-expected US jobs data allaying fears about the state of the economy and supporting sentiment. While US equities retraced their initial positive reaction the S&P500 still recorded a modest gain (+0.1%). US bond yields rose with the larger jump...