· The dollar held gains against its peers on Wednesday, buoyed by better-than-expected data, while the Aussie took a knock after Australia's economic growth slowed last quarter.
The Australian dollar slipped nearly 0.7 percent to a two-month low of $0.7035 as data earlier in the day reinforced recent evidence of slowing domestic momentum and backed market expectations for a rate cut this year.
Economic growth came in at a disappointing 0.2 percent in the fourth quarter, below an expected 0.3 percent, an outcome sure to keep the Reserve Bank of Australia (RBA) on heightened watch after it abandoned its long-held tightening bias last month.
On Wednesday, the RBA ended a 30th straight meeting with rates at a record-low 1.50 percent.
· The yield on the benchmark 10-year Treasury note, which moves inversely to price, was slightly lower at 2.71 percent, while the yield on the 30-year Treasury bond was also slightly lower at 3.01 percent. The 2-year yield held steady at 2.55 percent.
Fed Chairman Jerome Powell is set to address the Economic Club of Washington in a panel talk Thursday afternoon. The central bank chief is likely to discuss the path of monetary policy as well as the state of the economy and will participate in a Q&A session.
· That positive trade development will help Malaysia's current account balance, Cavenagh pointed out. More demand from China will boost oil prices, and lift the Southeast Asian nation's current account surplus since it's a palm oil exporter.
A current account surplus indicates a nation is a net lender, and typically supports a country's currency.
· A Goldman Sachs report this week also supported the view that China may be buying more commodities from the U.S. if a trade deal goes through.
"We expect that China would focus much of its total purchase commitment on agricultural and energy commodities," Goldman said in its report.
· China has been a strong performer among emerging economies, even if its growth has been slowing. But that's set to end, according to research firm Capital Economics.
Growth in China could plummet to 2 percent over the next decade — from the expected 6.0 to 6.5 percent target this year, predicted Capital's Chief Asia Economist Mark Williams.
"China's time as an emerging markets outperformer is ending," said Williams, at the Capital Economics annual conference in Singapore on Tuesday. He added that the estimated 2 percent growth is a "long way" from the 5to 6 percent expected by the International Monetary Fund for the next decade.
· That positive trade development will help Malaysia's current account balance, Cavenagh pointed out. More demand from China will boost oil prices, and lift the Southeast Asian nation's current account surplus since it's a palm oil exporter.
A current account surplus indicates a nation is a net lender, and typically supports a country's currency.
· President Donald Trump’s national security adviser, John Bolton, said on Tuesday that the United States would look at ramping up sanctions on North Korea if Pyongyang did not scrap its nuclear weapons program.
· North Korea is pursuing the "rapid rebuilding" of the long-range rocket site at Sohae Launch Facility, according to new commercial imagery and an analysis from the researchers at Beyond Parallel.
"This renewed activity, taken just two days after the inconclusive Hanoi Summit between President Donald Trump and North Korean leader Kim Jong Un, may indicate North Korean plans to demonstrate resolve in the face of U.S. rejection of North Korea's demands at the summit to lift five UN Security Council sanctions enacted in 2016-2017," the analysts said.
· Italy is planning to officially announce its support this month for China's Belt and Road Initiative, the Financial Times says, citing comments from Michele Geraci, undersecretary in the economic development ministry.
"We want to make sure that 'Made in Italy' products can have more success in terms of export volume to China, which is the fastest-growing market in the world," Geraci was quoted as saying.
Chinese President Xi Jinping's regional infrastructure investment program is widely seen as Beijing's attempt to expand its influence globally through the construction of a network of land and maritime routes across Asia, the Middle East, Africa and Europe.
· Oil prices fell on Wednesday as bullish output forecasts by two big U.S. producers and a build in weekly U.S. crude stockpiles outweighed OPEC-led production cuts.
International Brent crude futures were at $65.47 per barrel at 0745 GMT, down 39 cents, or 0.6 percent, from their last settlement. Brent had dropped to as low as $65.22 earlier in the session on Wednesday.
U.S. West Texas Intermediate (WTI) crude oil futures were down 0.7 percent, or 41 cents, at $56.15 per barrel.
Chevron Corp and Exxon Mobil Corp released rival Permian Basin projections on Tuesday pointing to increased shale oil production.
Reference: Reuters, CNBC
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