The US$ is trading mostly on the soft side on Wednesday as traders take profits after 8 straight days of gains, with the DXY trading down by 0.35% at 96.70, while stocks are up by around 1.5% as hopes grow of some kind of trade deal between the US and China, and helped along by a tentative deal among US lawmakers to avert another government shutdown. The upbeat outlook has meant a softening of safe haven demand, allowing stocks to head higher, while in the FX markets, along with the dollar, both the Yen and the Chf also remain rather weak heading into the new session. Gold is a bit higher (+0.25%) on the back of the soft dollar while WTI is up by 1.5% after the Saudi Energy Minister said that the kingdom will pump just 9.8 million barrels per day in March, more than 500,000 bpd below what it agreed to in December with the enlarged OPEC+10 group including Russia to lift crude prices.
Wednesday will get off to a lively start, with the RBNZ Meeting/Interest Rate Decision/Statement/Press Conference at which no change is expected and the focus will lie in the wording of the statement and in the press conference.
This will be closely followed by the Australian Consumer Confidence and the China Foreign Direct Investment data for January. Later on we get inflation data from both the UK (exp 1.9%yy Jan) and the US (exp EX F/E; 2.1%yy Jan). There will also be a couples Fed speakers due (Bostic/Mester).
Economic data highlights will include:
Wed: RBNZ Meeting/Interest Rate Decision/Statement/Press Conference, Australian Consumer Confidence, China Foreign Direct Investment, UK CPI, PPI, RPI, EU Industrial Production, US CPI.
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