RBNZ Holds, Yen Falls, and Copper Steals the Spotlight

Hello traders — welcome to Wednesday. It’s been a busy day on the macro front, with several key developments shaping market direction.

We started the day with inflation data from China, which came in mixed. Consumer inflation (CPI) surprised to the upside, while producer prices (PPI) came in below expectations. That left markets unsure of China’s near-term growth story — the numbers didn’t send a strong signal either way.

Also on the docket was the interest rate decision from the Reserve Bank of New Zealand. As expected, the RBNZ left rates unchanged at 3.25%, mirroring the RBA’s earlier decision to hold. This outcome was widely priced in, so no surprise or volatility followed.

Still ahead today is a key item: the FOMC meeting minutes, due at the end of the U.S. session. Markets will be combing through the language for any shifts in tone or clues about future rate cuts.

Away from the calendar, Donald Trump re-entered the spotlight. He reiterated his call for Jerome Powell to cut rates, while also hinting at new trade policy action. In a post earlier today, he announced that seven countries would be “released” in terms of trade decisions, with additional countries to follow later in the day. It’s the latest twist in the ever-evolving trade war narrative, and the market is watching closely.

On the currency front, the weakest player today is the Japanese yen, which is falling rapidly across the board. On the other side, the strongest currencies right now are the Australian dollar, the British pound, and the U.S. dollar — all showing solid intraday momentum.

In commodities, the standout story is copper, which has exploded higher over the past two days. After a strong rally yesterday, copper continues to climb today, bringing the two-day gain to around 10%. It’s been one of the most notable movers of the week.

Oil is also having a strong week, continuing its climb with solid momentum. In contrast, gold is heading the other way — the metal is under pressure and steadily losing ground, making it one of the weaker assets of the session.

As for indices, the picture is mixed. Futures are drifting sideways, showing no clear conviction. Yesterday saw a strong performance from the DAX, which posted a notable gain. U.S. indices were more sluggish, creating a bit of divergence between Europe and the U.S. Still, from a broader perspective, the mid-term trend remains bullish across global equities.

Source: https://www.axiory.com/analytics/market-news/rbnz-holds-yen-falls-and-copper-steals-the-spotlig