Investing.com – Most Asian currencies were little changed on Wednesday, while the dollar steadied after recent losses as markets paused for key new signals on U.S. monetary policy.
Sentiment towards Asian markets also remained largely weak following moderate economic signals from China. The region’s largest economy has set its gross domestic product target for 2024 at 5%, the same as for 2023, and has given few signals of increased political support for the economy.
The pair fell a little and was close to breaking through the 7.2 level.
The index firmed slightly below the 150 level as broader financial markets, especially equities, fell on Tuesday. The focus has also been on when the Bank of Japan could potentially start raising interest rates.
Australian dollar rises amid stable fourth-quarter GDP
Shares were among the day’s best performers, rising nearly 0.2% as data showed gains as expected.
The results showed that strong government and capital spending helped offset the sharp decline in personal consumption. But the trend is expected to weaken in the coming months, with slowing consumption likely to put more pressure on the economy.
The slowdown in consumption also portends a further decline in inflation, a scenario that could eventually lead to interest rate cuts by the Reserve Bank.
Commonwealth Bank of Australia (OTC:) analysts said on Wednesday they expect the RBA to cut rates by 75 basis points in 2024 – a scenario that does not bode well for the Australian dollar.
Other Asian currencies remained in a narrow range on Wednesday. The fall was 0.1%, despite February being hotter than expected.
It was flat, just like .
Dollar stabilizes ahead of Powell’s testimony
Both indexes were little changed in Asian trading on Wednesday after falling from three-month highs over the past two weeks.
Much of the focus was on two days of testimony from the US president, who is widely expected to maintain his hawkish rhetoric on interest rates.
Powell’s testimony also came as a chorus of Fed officials warned that the bank was in no rush to cut interest rates in the face of persistent inflation.
However, according to .
In addition to Powell, data for February will also be released this week.