©Reuters.
Investing.com — Most Asian currencies were little moved Wednesday, but the dollar steadied from recent losses as markets sank on expectations for further key clues on U.S. monetary policy.
Sentiment towards Asian markets also remained subdued due to moderate economic data from China. The region's biggest economy set a gross domestic product target of 5% for 2024, the same as for 2023, but clues about further policy support for the economy were scant.
It fell slightly and almost broke through the 7.2 level.
It held firm at just below the 150 level, partly due to its safe-haven activity as broader financial markets, led by stocks, fell on Tuesday. Attention was also focused on when the Bank of Japan might start raising interest rates.
Australian dollar strengthens on strong Q4 GDP
The stock rose nearly 0.2%, the best performance of the day, as the data showed it grew as expected.
The survey results showed that strong government spending and capital investment are helping offset the sharp decline in consumer spending. However, this trend is expected to fade in the coming months, and the slowdown in consumption is likely to further weigh on the economy.
The slowdown in consumption also portends further declines in inflation, a scenario that could eventually lead to the Reserve Bank cutting interest rates.
Commonwealth Bank of Australia (OTC:) analysts said on Wednesday they expect the Reserve Bank of Australia (RBA) to cut interest rates by 75 basis points in 2024, a scenario that bodes badly for the Australian dollar. He said that.
Other Asian currencies traded in a narrow range on Wednesday. Despite being higher than expected in February, it fell 0.1%.
was equally flat.
Dollar strengthens ahead of Powell testimony
Both stocks were little changed in Asian trading on Wednesday after falling from three-month highs over the past two weeks.
Attention focused on two days of testimony from Mr. Trump, who is widely expected to remain hawkish on interest rates.
Powell's testimony came as Fed officials warned there was no need to rush to cut interest rates as inflation continues.
Still, traders largely maintained their expectations for a 25 basis point (bp) rate cut in June, the paper said.
In addition to Powell, data for February will also be released this week.
