ForexLive Asia-Pacific FX news wrap: ‘Risk’ trades higher | Forexlive

AUD,
NZD, CAD along with EUR and GBP all traded higher against the USD
during the session here. US stock indexes traded higher also
(Globex). Its difficult to point to a ‘smoking gun’ for the move
during the session, both news and data flow were very light. Asia
digested the Federal Open Market Committee (FOMC) minutes
(January31/February 1 meeting). About the only information I gleaned
from the minutes was that “a few members favoured a 50 bp hike”.
We already knew that Bullard and Mester did, which is a couple. I’m
guessing a ‘few’ is more than a ‘couple’ so there do seem to
be a few more 50s around the Committee table. Regardless, Asia took
‘risk’ up.

We
did get data from Australia today, an improvement in business
investment (capex) in Q4 2022 vs Q3 and a solid outlook in the estimate
ahead. We also had wages data out at the same time that showed wage
growth is not indicative of any accelerating ‘wage-price’ higher
inflation spiral. We’d
already
had similar indications from data just
yesterday from Australia:

Australian Wages data Q4 2022: +0.8% q/q (vs. expected +1%)

The
PBOC set the onshore yuan reference rate today at the weakest for the
yuan since January 4.

The Bank of Korea held its benchmark interest rate at 3.5%, as expected, the first on hold decision, by a very close vote indeed, after nearly a year of rate hikes.

Asian
equity markets: