Reserve Bank of Australia Governor Lowe, read from the bottom up for the chronology:
- RBA Gov. Lowe again: If things go right rates could start to come down in 2024
- More from RBA Gov Lowe: Our assessment is we have to raise rates higher
- RBA Gov Lowe says that if saw another weak job report might reconsider tight labour market
- RBA Gov Lowe says rate rises in Australia are not over
- RBA Gov Lowe says high inflation is damaging, corrosive. Will do what is necessary.
Other:
- North Korea says its considering additional military action due to US pressure
- ICYMI - ING see "big slowdown in U.S. core inflation" in H2 2023
- Chinese financial institution 'China Renaissance' unable to contact Chair, CEO, share off
- PBOC sets USD/ CNY reference rate for today at 6.8659 (vs. estimate at 6.8674)
- ANZ forecast the RBA cash rate to a peak 4.1%, up from the previous forecast 3.85%
- NZ finmin Robertson says there is evidence that inflation has peaked
- Singapore Non-oil Domestic Exports (NODX) for January +0.9% m/m (expected -1.2%)
- PBOC is expected to set the USD/CNY reference rate at 6.8674 – Reuters estimate
- A senior Pentagon official to visit Taiwan in coming days
- ICYMI - Morgan Stanley's 3 reasons investors should pivot away from stocks to bonds
- More from Fed's Mester says there risks other than inflation, but inflation is the focus
- Bitcoin has dropped back under US$24K - Canada crackdown news weighing?
- Cleveland Fed's Mester spoke, didn't add anything new to her comments earlier on Thursday
- Goldman Sachs add another Federal Open Market Committee (FOMC) rate hike to their forecast
- Bank of Canada Beaudry: Important to stay vigilant on inflation despite pain of high rates
- Canada will tighten requirements for cryptocurrency exchanges operating in the country
- ICYMI - Saudi Energy Minister says he remains skeptical of Chinese demand forecasts
- Year-end EUR/USD forecast 1.14, and USD/JPY 121 (via BNP)
- Trade ideas thread - Friday, 17 February 2023
- US major indices close at lows for the day
- No comments on monetary policy from the Fed's Cook
- Forexlive Americas FX news wrap: Bullard finally cracks the market's resolve
It was a sparse news and data day apart from a barrage of central bank speakers. Major FX continued its Thursday move of a pretty much across-the-board stronger US dollar.
We had comments during the session from:
- Federal Reserve Bank of Cleveland President Loretta Mester who didn’t add much to her (hawkish) comments during the US Thursday session
- Bank of Canada Deputy Governor Beaudry who argued to stay the course on the BoC inflation battle
- and Reserve Bank of Australia Governor Lowe in a long, long testimony to the Australian parliament (committee)
There are multiple posts above from Lowe’s testimony (like I said, it was long) and once again Lowe made the point that there were more interest rate rises to come in Australia. He also tentatively flagged the idea that there could be rate cuts in 2024 (note the last time Lowe mentioned what he thought would be 2024 policy moves it didn’t work out well at all ;-) ).
In New Zealand, Finance Minister Roberton said Cyclone Gabrielle’s devastation of the North Island is likely to exacerbate the economic slowdown. He added that while inflationary pressure would get a boost from the recovery the evidence shows the CPI has peaked. The RBNZ meet next week, February 22, and the pressure is on to pause on a +50bp rate hike that is widely expected.
Bitcoin fell back, with lows back under US$23.5K. Hawkish rhetoric from Fed officials and further signs of an aggressive US, and Canadian, regulatory clampdown weighed.
An interesting item for equities in the region. A high-profile Chinese investment banker, Chair and CEO of China Renaissance, was reported as not contactable.Shares in the firm dropped as much as 50% in early Hong Kong trading.
Asian equity markets:
Japan’s Nikkei 225 -0.6%
China’s Shanghai Composite -0.1%
Hong Kong’s Hang Seng -0.6%
South Korea’s KOSPI -1%
Australia’s S&P/ASX 200 -0.8%
