Markets Remains Cautious Ahead of Central Bank Meetings
Today markets have been quiet overall, with little change across major currencies. Gold decided to make a move a while ago, dipping $14 lower to $2,016 but bounced back up in no time. The USD was stable earlier, but is presently slightly weaker on the balance as Treasury yields slip lower, with 10-year bond rates falling to 4.07%, placing some pressure on the dollar.
Risk Assets Remain Mixed, As China Vowes Weigh
Risk assets are mixed too, with stocks taking advantage, with US indices leading the way to new record highs, followed by tech shares. S&P500 buyers are pushing to build on the break of the 4,800 zone which was broken last week. Regarding commodity dollars, USD/CAD is little changed, after a small move lower in the European session, but has reversed the losses in the US session. AUD/USD is slightly down by around 0.2%, slipping below 0.66, however, the AUD and the NZD are still reeling from China’s ongoing problems, as Chinese stocks continued lower after the Pople’s Bank of China opted to keep the LPR unaltered early this morning.
Last year, home foreclosures in China increased by 43%, indicating a concerning pattern of escalating mortgage delinquencies amid a persistent property market decline and an anemic economic recovery. Foreclosures have been steadily increasing since 2020, and have continued to grow in the early days of this year. In 2023, the struggling real estate market had the greatest decline in new home prices in 10 years, slowing the overall recovery of the Chinese economy. This is keeping the NZD in particular, under selling pressure, and NZD/USD has slipped below has broken below 0.61 level, although let’s see if sellers can keep the price above this major zone.
Gold XAU Live Chart
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