RBA Hikes Interest Rate to 4.60% as Inflation Risks Rise 
China, US Extend Trade Truce Through January 10 After Trump-Xi Summit 
Oil Prices Rise as Iran Holds Firm on Strait of Hormuz Deal 
Asian Currencies Weaken as Dollar, Oil Prices Rise 
Gold Plunges 4% as Treasury Yields Surge and Fed Rate Hike Bets Rise 
Nvidia China Chip Sales Report Sends Chinese Semiconductor Stocks Lower 
Asian Currencies Mixed as Yen Weakens, RBA Hike Looms 
Asian Stocks Fall as Bond Yields and Oil Prices Surge 
South Korea Exports Set for 16th Monthly Gain on AI Chip Demand 
Australia Budget Deficit Narrows to A$22.3 Billion on Stronger Tax Revenue 
Asian Chip Stocks Tumble as OpenAI Safety Pause Sparks AI Growth Concerns 
Japan Warns Markets Over Yen Weakness 
Hong Kong Home Prices Stabilize in August After July Decline 
South Korea Tax Windfall Could Top 50 Trillion Won on Chip Boom 
XRP Price Targets $1.70 as Bullish Momentum Builds 
ECB May Stop Rate Hikes After December, Capital Economics Says 
US Stocks Face Jobs, Inflation Test as Fed Rate Hike Bets Rise 
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The U.S. dollar traded mostly flat in early Asian trading on Wednesday as investors focused on upcoming U.S. inflation data for clues about the Federal Reserve’s next interest-rate decision. Renewed attacks on shipping routes in the Middle East had limited impact on currency markets, although higher oil prices remain a key risk for inflation.
The Japanese yen was little changed at 159.275 per dollar, remaining near its weakest level of the month despite recent coordinated action by U.S. and Japanese authorities aimed at supporting the currency. The euro was steady at $1.1542, while the British pound held around $1.3508.
Among commodity-linked currencies, the Australian dollar remained near $0.7064 and the New Zealand dollar traded around $0.5879. Investors were also monitoring political developments in New Zealand as Prime Minister Christopher Luxon met with National Party lawmakers amid speculation about his leadership ahead of the country’s next general election.
The biggest market catalyst is Wednesday’s U.S. inflation report. Traders are looking for signs that price pressures are easing, which could influence expectations for Federal Reserve interest rates. Recent weaker-than-expected U.S. employment data have increased uncertainty over the central bank’s policy path.
ING analysts said inflation could continue moderating through the rest of 2026 if oil prices remain under control and shipping through the Strait of Hormuz returns to normal. However, geopolitical tensions could complicate that outlook by pushing energy prices higher.
Brent crude rose about 0.6% to $89.40 a barrel after fresh attacks disrupted shipping near the Bab el-Mandeb Strait and the Strait of Hormuz.
Federal Reserve Bank of Chicago President Austan Goolsbee said inflation remains a greater concern than labor-market weakness, adding to uncertainty about future policy. Fed funds futures currently show traders almost evenly split, with a 52% probability of unchanged rates and a 48% chance of a 25-basis-point increase at the September meeting.
In crypto markets, Bitcoin slipped 0.2% to $63,554, while Ethereum fell 0.1% to $1,879.
