- The start of Tuesday's forex session focused on the publication of the RBA and BOJ Minutes.
- In the case of the Bank of Australia, the data confirmed the bank's hawkish stance at its December meeting, noting progress on inflation, although it is still above target. The bank sees less risk to CPI growth in the medium term, although many uncertainties remain in the ongoing disinflationary trend.
- The Bank of Japan emphasized its cautious approach to raising rates. The BoJ is expected to do so at a moderate pace, and has indicated that further increases will take place as long as the economy, inflation and wages develop as expected. Recall that Ueda admonished during the decision that new survey data on wages will be known in late March/early April, which could create the ground for a longer delay in further hikes.
- Stocks in the Asia-Pacific region saw mostly moderate gains on low volumes over the holiday season.
- China convened a national fiscal conference in Beijing, where plans to increase fiscal spending and accelerate the pace of spending in 2025 were announced. In view of this, Chinese indices fared the best in terms of growth in Asia. Shanghai markets rose nearly 1.3% today.
- Bitcoin is extending its downward momentum today and is trading below the $93,500 barrier. Weak sentiment also prevails on other cryptocurrencies. Ethereum is currently losing 2%.
- Precious metals are gaining slightly in value. Gold is up 0.27%, and silver is up 0.28%.
- In the energy commodities market, we are not seeing big price jumps at the moment. WTI crude oil is up 0.06%, while NATGAS is losing 0.26%.
- In the broad FX market, the New Zealand dollar and the Japanese yen are currently the best performers. Elevated downward pressure, however, can be seen on the euro.
