Spreadex Market Update
Better China Data Boosts Risk Sentiment on Wednesday
Equities Lifted by Better China Data & Softer USD
Equities markets are seeing a better open today on the back of better data out of China overnight and some weaker US data yesterday which has seen USD looking rather muted into the middle of the week. Today traders will be looking to a slew of regional PMI readings out of the eurozone as well as US ISM manufacturing PMI. If USD is seen trading higher today in response to any upside surprise in manufacturing, this could easily send equities lower once again, with the broader focus on hawkish central bank expectations still a key threat.
NZD Takes the Lead
The recovery in risk sentiment on Wednesday has been most apparent in the firm upside move we’re seeing in NZD today. The Kiwi is rallying across the board, up more than 1.2% against USD. AUD has been firmer too though the move has not been as pronounce. Overnight, Aussie inflation was seen cooling to 7.4% from 8.4% prior which will be encouraging for the RBA and also throws questions over how aggressive the bank will be at its next meeting.
Metals & Crude Climbing Higher
In the metals and commodities space, both gold and silver are trading in the green again today, looking to extend the rally from yesterday amidst a slightly weaker USD. However, any surprise upside in today’s PMI data holds the potential to unseat these moves. Crude prices are continuing to climb into the middle of the week, now up more than 5% off last week’s lows. Better data out of China is promising for the demand outlook, helping lift sentiment. Today, focus turns to the latest EIA update forecast at 1.7 million barrels down from 7.6 million barrels prior.
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