Bonds Rally, Equities Watch

The central bank doves are forcefully back following a significantly lower-than-expected US JOLTS print, and on the back of a surprisingly dovish comment from an otherwise… hawkish Isabel Schnabel from the European Central Bank (ECB).

DXY Escaped Downward November Trend Channel

DXY escaped the downward November trend channel by closing above 104. Currencies Down Under underperformed. Moody’s cut the rating outlook of a key trading partner, China, to negative. It highlighted the economic and financial uncertainty surrounding the country. While the CNY held its nerves yesterday, it is facing stronger selling pressures this morning.

Bitcoin and Ether Reach New Heights. Where is the Stopping Point?

Bitcoin is adding over 5% in 24 hours, trading near $43.7K at the time of writing and touching $44.5K at the start of the day. Previously, we have repeatedly noted “thin air territory” in the $40-46K range. The market did not linger here in previous times, and we should look for hints of turning points not earlier than the $46-47K area, where there was a reversal in March last year and temporary support in 2021.

RBNZ Review: Talking Tough and Maybe Doing Something

As widely expected, the RBNZ left the OCR at 5.5% at its final policy review for this year. Of much greater interest to markets was what the Bank had to say about the outlook for the OCR next year and beyond.

Bullish Trend in AUDUSD Pauses But Remains Intact

The Australian dollar (AUD) gained 0.64% on Tuesday, as the U.S. dollar was weakening on fuelling expectations that the Federal Reserve (Fed) has finished hiking interest rates.

Gold Surges on the Back of Dovish Fed Comments

XAUUSD rose sharply during the Asian trading hours but pulled back during the early European session. Today, traders should focus on the U.S. GDP Growth Rate report at 1:30 p.m. UTC. Lower-than-expected figures will probably push XAUUSD towards 2,052. However, the bullish trend might pause if the numbers exceed expectations. 'Spot gold may extend gains into a range of $2,059–$2,069 per ounce, driven by a powerful wave 3,' said Reuters analyst Wang Tao.

Crypto Market Back to Test Multi-month High

The crypto market added 2.4% in 24 hours to $1.43 trillion and went back to test highs since May 2022. Bitcoin added 3% during this time, Ethereum 2.75%, and Solana was the top performer among the major coins, adding 8.4%. Toncoin was on a back foot with its 0.4% gain.

US Q3 GDP Revised Higher, While Corporate Profits Sharply Accelerate  

At the beginning of 2023, most forecasters expected the U.S. economy to be contracting or at least slowing through the second half of this year. Instead, Q3 growth expanded at a pace that was more than double the previous quarters' rate of growth, and well above what most believe to be the economy's underlying potential growth rate of 1.8%.

Australian Dollar Falls as Inflation Cools

The Australian dollar is in negative territory on Wednesday, after four straight winning sessions. In the North American session, AUD/USD is trading at 0.6623, down 0.39%.

EUR/USD Dips as German Inflation Declines

Gerrmany’s inflation rate dropped more than expected, coming in at 3.2% y/y in November. This was down considerably from 3.8% in October and below the market consensus of 3.5%. This was the lowest inflation rate since June 2021 and was driven by lower food and energy inflation. Services inflation eased to 3.4%, down from 3.9%. Core inflation dropped to 3.8%, down from 4.3% in October.