CNY

• 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...

• Risk rebound. Strong recovery in US equities. USD lost ground. Backdrop pushed NZD & AUD higher. JPY still under pressure post weekend elections.• Data flow. RBA Deputy Gov speaks (Weds). US retail sales (Tues night), jobs report (Weds night), & CPI (Fri night) due. Several Fed members also speak. Global Trends There was a turnaround in market sentiment at the end of last week with cyclical assets (i.e. equities and copper) and growth linked currencies such as the AUD and NZD posting solid gains on Friday. After a few soft sessions related to concerns about AI disruption and the...

• Push-pull. A few equity market wobbles overnight. USD a bit firmer. NZD underperforms. AUD retraces its RBA rate hike induced uptick.• Macro events. ECB & BoE expected to hold rates steady tonight. US JOLTS also due. US jobs report has been delayed until next week. Global Trends There were a few market wobbles overnight as various forces pushed and pulled on sentiment. US equities slipped back with the tech-focused NASDAQ underperforming (-1.5% vs S&P500 -0.5%). Some disappointing earnings results and a rotation out of the software and chipmaking tech stocks that have driven the market rally were factors at...