Overnight, the RBA left rates unchanged but opened the door to a cut. This led to a move lower in the currency, with its next meeting scheduled for 18 February.
On the data front, China’s exports in USD terms grew 6.7% y/y in November. Meanwhile, gold was supported yesterday by China’s central bank adding bullion to its reserves for the first time in seven months. Stocks had a mixed session, with the CSI300 gaining 0.7% and the S&P closing down 0.61%.
Domestically, UK Chancellor Reeves will start the new year looking for departmental savings. In an email sent to all departments, she stated that the Treasury would “inspect every pound of government spend.” Reeves needs to fulfil her fiscal ambitions but has managed to push herself into a corner. Comments such as “no return to austerity” or backtracking on “no more tax hikes,” coupled with limited fiscal headroom, make her job increasingly difficult. The 200-day Moving Average sits at 1.2822 and serves as a natural resistance level.
Market-wise, Bitcoin rose 0.6% to $97,522.21, Ether gained 1.1% to $3,742.56, the yield on 10-year Treasuries declined two basis points to 4.19%, Australia’s 10-year yield dropped six basis points to 4.14%, and West Texas Intermediate crude fell 0.5% to $68.03 a barrel.
The data front remains quiet today, with US unit labor costs and weekly crude oil stocks being the highlights.
