Posted at 22 January 2025 / Categories Market Roundups
Market Roundup
•New Zealand CPI (YoY) (Q4) 2.2%, 2.1%forecast,2.2% previous
•New Zealand CPI (QoQ) (Q4) 0.5%,0.5% forecast, 0.6% previous
•Australia MI Leading Index (MoM) (Dec) -0.0%, 0.1% previous
Looking Ahead Economic Data(GMT)
•08:00 Swiss World Economic Forum Annual Meetings
•10:00 Spanish Consumer Confidence (Dec) 80.6 previous
Looking Ahead Events And Other Released
• No Events Ahead
Currency Summaries
EUR/USD: The euro edged lower against the dollar on Wednesday as a lack of clarity on President Donald Trump's plans for tariffs kept financial markets guessing.Trump said late on Tuesday that his administration was discussing imposing a 10% tariff on goods imported from China on Feb. 1, the same day that he previously said Mexico and Canada would face levies of around 25%.He also vowed duties on European imports, without providing further details. Investors will focus on Friday Purchasing Managers’ Index data for January on Friday and the GfK consumer confidence indicators. Immediate resistance can be seen at 1.0440(50%fib), an upside break can trigger rise towards 1.0500(Psychological level).On the downside, immediate support is seen at 1.0374(38.2%fib), a break below could take the pair towards 1.0307(23.6%fib).
GBP/USD: The pound dipped on Wednesday as uncertainty surrounding U.S. President Donald Trump's potential tariffs kept investors cautious. On day two of Donald Trump's second administration, exchange rates are in focus as investors try to navigate the uncertainty surrounding the U.S. president’s trade policy. While it seems almost certain that Trump will impose tariffs on imports from several key trading partners, the specifics—such as which products and countries, and to what extentremain unclear, leaving the dollar and other currencies exposed to volatile and unpredictable trading. Immediate resistance can be seen at 1.2357(Jan 21st high), an upside break can trigger rise towards 1.2437(50%fib).On the downside, immediate support is seen at 1.2310(38.2%fib), a break below could take the pair towards 1.2163(23.6%fib)
AUD/USD: The Australian dollar edged lower on Wednesday after U.S. President Donald Trump on Tuesday vowed to hit 10% punitive duty on Chinese imports. Trump pledged to impose tariffs on the European Union and announced that his administration was considering a 10% tariff on goods imported from China, set to begin on February 1.On the data front, Australia’s Q4 consumer price report is due next week, with analysts hoping core inflation will slow enough to prompt a rate cut from the Reserve Bank of Australia on Feb. 18. At GMT 07:43, The Australian dollar was last trading down 0.17% to $0.6260 . Immediate resistance can be seen at 0.6288(50%fib), an upside break can trigger rise towards 0.6297 (Higher BB).On the downside, immediate support is seen at 0.6223(23.6%fib), a break below could take the pair towards 0.6171 (Jan 16th low).
USD/JPY: The U.S. dollar strengthened on Wednesday as the yen weakened slightly ahead of the Bank of Japan’s (BOJ) rate decision. The BOJ is expected to raise interest rates on Friday, barring any market disruptions from U.S. President-elect Donald Trump's inauguration. This rate hike would raise short-term borrowing costs to levels not seen since the 2008 global financial crisis. At the two-day meeting ending Friday, the BOJ is likely to increase its short-term policy rate to 0.5%. The bank is also expected to revise its price forecasts upward, with growing expectations that rising wages will help Japan meet its 2% inflation target sustainably. Immediate resistance can be seen at 156.25 (38.2%fib) an upside break can trigger rise towards 157.00(Psychological level). On the downside, immediate support is seen at 154.92(50%fib) a break below could take the pair towards 154.75 (Lower BB).
Equities Recap
Asian stocks rose on Wednesday as President Donald Trump's push to increase investment in artificial intelligence lifted the outlook for the region's tech companies.
Japan’s Nikkei was up 1.58% , and South Korea's KOSPI was up by 1.15%
Commodities Recap
Gold prices climbed to a fresh 11-week peak on Wednesday, boosted by safe haven demand amid uncertainty surrounding U.S. President Donald Trump's trade policies and a softer dollar.
Spot gold added 0.1% to $2,748.18 per ounce as of 0236 GMT, after hitting its highest since Nov. 5, 2024 earlier in the session. U.S. gold futures gained 0.1% to $2,762.90.
Oil prices fell on Wednesday, extending declines from the previous session, as markets reacted to U.S. President Donald Trump's declaration of a national energy emergency on his first day in office and his potential tariff policies.
Brent crude futures fell 36 cents, or 0.5%, to $78.93 per barrel at 0730 GMT. U.S. West Texas Intermediate crude futures dropped 46 cents, or 0.6%, at $75.37.