Greenback lower as global shares gain
The Australian dollar outperformed overnight after a hot inflation print sparked speculation about a possible rate hike in March.
The Aussie strengthened across the board, with AUD/USD up 0.9%, AUD/EUR up 0.6% and AUD/NZD up 0.4%.
Sentiment also improved after AI‑chipmaker Nvidia, now the world’s largest company, beat quarterly revenue forecasts by more than USD2bn. Global sharemarkets moved higher.
Elsewhere, the USD drifted lower. NZD/USD gained 0.6%, USD/CNH fell 0.4% and USD/SGD slipped 0.3%.
Aussie inflation beats forecasts
Australia’s January CPI held at 3.8% y/y, beating the 3.7% forecast. The trimmed mean rose to 3.4% y/y, also above expectations. The data highlight persistent price pressures and gave the Aussie fresh momentum.
Markets still lean toward a May rate hike, but the odds of a March move have edged higher.
AUD/USD pushed above 0.7100 as it approached a three‑year high.
Immediate support sits at the 21‑day EMA of 0.7021, with deeper support at the 50‑day EMA of 0.6896.
China holiday travel surges; USD/CNH near 34‑month low
China’s record nine‑day Lunar New Year holiday lifted services activity, with 596 million domestic trips and CNY 803.5bn in tourism spending — both up about 19% y/y, according to official data. Foot traffic surged across major scenic sites and big cities, while dining sales rose 5.2%, boosting chains such as Haidilao.
But spending quality was mixed. Tourism spend per trip dipped 0.2%, and box‑office revenue fell 39.5% y/y. The figures show resilient demand for services but soft confidence in discretionary spending.
USD/CNH is trading just 0.02% above its recent low of 6.8662, a 34‑month low.
Resistance sits at the 21‑day EMA of 6.9096, followed by the 50‑day EMA of 6.9520.
Aussie at highs across markets
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 23 — 28 Feb
All times AEDT
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*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
