Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
The U.S. dollar hovered near two-month lows on Tuesday as investors weighed trade tariff uncertainties and the Federal Reserve's rate cut outlook. The dollar index edged up 0.1% to 106.83 but remained close to Friday’s low of 106.56. Traders are awaiting the Federal Reserve’s January meeting minutes on Wednesday for insights into policymakers’ stance on tariffs and inflation.
Recent data showing U.S. consumer prices rose at the fastest pace in 18 months reinforced the Fed’s cautious approach to rate cuts. ANZ strategists predict no rate cuts until the second half of 2025, expecting 75 basis points of easing, while markets anticipate 40 bps cuts this year.
The Japanese yen held firm at 151.61 per dollar after strong Q4 GDP data and persistent inflation boosted expectations of a Bank of Japan rate hike in July. The yen has gained nearly 4% against the dollar in 2025.
The euro remained steady at $1.04735, and the British pound traded at $1.2608 ahead of Saudi-hosted Ukraine peace talks. The Australian dollar, down 0.17% to $0.63459, stayed near its two-month high of $0.6374, with the Reserve Bank of Australia expected to cut rates by 25 bps. Economists at Commonwealth Bank of Australia noted the AUD could surge over 1% if the RBA holds rates steady.
The New Zealand dollar dropped 0.3% to $0.57195 as markets anticipated a 50 bps rate cut from the Reserve Bank of New Zealand on Wednesday.
Investors remain cautious, focusing on central bank policies, inflation trends, and geopolitical developments.
