Hello traders, and welcome to Wednesday.
Today’s calendar is packed with key data and events, already kicking off with inflation from Australia, which came in slightly above expectations at 2.4% vs. 2.3% expected. However, the Australian dollar is underperforming, showing notable weakness despite the stronger data.
In contrast, the New Zealand dollar is leading the pack, following a 25 basis point rate cut from the Reserve Bank of New Zealand. This move came along with a hawkish statement, resulting in NZD gaining, highlighting strong investor appetite and further exposing the relative weakness of AUD.
Looking ahead, all eyes will be on the FOMC meeting minutes later today — a key risk event for the USD and commodities. Additionally, the market is bracing for NVIDIA’s earnings release after the U.S. session close, which is set to be a major market mover, especially for tech stocks and U.S. indices.
On the indices front:
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European futures are climbing, with DAX approaching all-time highs.
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U.S. futures are slightly in the red, but overall sentiment remains cautiously optimistic.
Commodities:
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Oil continues its sideways drift, showing no clear direction.
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Precious metals are in the green this morning, with modest gains across gold, silver, and platinum, possibly in anticipation of the FOMC minutes.
Stay sharp today — markets are reactive, and volatility is likely to spike during the U.S. session, especially with NVIDIA and Fed minutes in play.