Australian dollar retraces its losses.
The Australian Dollar (AUD) attempts to recoup losses after falling in the previous two sessions on Monday. The Australian Dollar (AUD) gains momentum against a weaker US Dollar (USD) and low US Treasury yields. Due to the observation of Martin Luther King Jr. Day on Monday. The market is expected to be relatively calm in terms of US economic data.
Despite disappointing US bond yields, the US dollar remains stable.
Australia’s currency gained strength as a result of increased demand. The market is speculating on a rate cut by the US Federal Reserve (Fed) in March. This assumption gathered traction after Barclays updated its projection for the first Federal Reserve (Fed) rate decrease on Friday. Shifting it ahead to March from June. In a note issued on Friday, Barclays analysts predicted that the Federal Open Market Committee (FOMC). Would cut the Fed Funds rate by 25 basis points at its March meeting.
Australian job adverts increased by 0.1% in December, compared to the previous month’s 4.6%.
The Australia and New Zealand Banking Group Limited (ANZ) job adverts in Australia improved by 0.1% in December, reversing a 4.6% fall in November. Market investors will be watching the Westpac Consumer Confidence for January and the TD Securities Inflation for December, both of which are slated for release. Tuesday is the day. On Thursday, the spotlight will move to Consumer Inflation Expectations and labor market statistics.
Former PBoC director Sheng Songchen predicted that China’s property slump will last another two years.
According to Bloomberg, former People’s Bank of China (PBoC) director Sheng Songchen indicated at a seminar in Shanghai on Saturday that China’s property crisis could go another two years before stabilizing. He predicts that new-home sales in the United States would fall by another 50 million square meters in 2024 and 2025. The 2025 annual total is estimated to be over 850 million square meters.
For the third session in a row, the US Dollar Index (DXY) is gaining momentum. However, lower Producer Price Index (PPI) data from the United States (US) on Friday may have contributed to the US Dollar’s decline. United States Retail On Wednesday, sales figures will be released.
Daily Market Movers: Australian Dollar advances on a risk on environment.
Australia’s trade surplus climbed to 11,437 million MoM in December, topping the market forecast of 7,500 million and outperforming the prior estimate of 7,129 million.
The Australian Monthly Consumer Price Index (YoY) for November fell slightly short of the market forecast of 4.4%, falling short of the prior reading of 4.9%.
The Chinese Consumer Price Index (YoY) fell by 0.3% in December, compared to the projected 0.4% drop. The monthly Consumer Price Index fell by 0.1%, versus the market’s expectation of 0.2%. The yearly Producer Price Index declined by 2.7%, slightly more than the predicted 2.6% drop.
The Chinese trade balance in USD grew to $75.34 billion over the previous year. previous $68.39B, outperforming the predicted $74.75B. Exports increased by 2.3% year on year, beating the market forecast of 1.7%. Imports in CNY climbed by 1.6% year on year, compared to 0.6% the previous year.
According to the US Bureau of Labor Statistics, the December Producer Price Index (PPI) was 1.0% higher year on year than the prior reading of 0.8%. YoY Core PPI was 1.8%, down from 2.0% in November. The headline and Core PPI indexes were steady on a monthly basis, at -0.1% and 0.0%, respectively.
According to the US Bureau of Labor Statistics, the Consumer Price Index (CPI) increased by 3.4% year on year in December, beating both November’s 3.1% and the market’s expected 3.2%. The monthly CPI growth rate for December was 0.3%, above market analysts’ expectations. 0.2% is the estimated prediction. The annual Core CPI was 3.9%, down from 4.0% in November, while the monthly figure stayed stable at 0.3%, in line with predictions.
