Forex News

Gold edged higher above $3,020 per ounce on Wednesday, hovering near record highs, supported by its safe-haven appeal amid uncertainty over the impending rollout of US reciprocal tariffs. While President Donald Trump's tariff plan, set for April 2, is expected to be more targeted and limited than his previous pledges, the new round of duties would still mark a significant escalation for the US and its trading partners. Meanwhile, investors await speeches from several Federal Reserve officials for insights into this year’s monetary policy, along with Friday’s US PCE data for clues on the Fed’s next moves. On the geopolitical front, the US reached agreements with Ukraine and Russia on Tuesday to pause attacks at sea and on energy targets, with Washington pledging to push for some sanctions relief on Moscow, slightly dampening bullion's safe-haven allure.

The dollar index hovered around 104.2 on Wednesday, showing little movement as investors weighed trade-related and broader economic uncertainties in the US. Markets remained cautious ahead of President Donald Trump’s reciprocal tariffs, set to take effect next week, though the scope of implementation remains unclear. Meanwhile, data released on Tuesday revealed a decline in US consumer confidence, with future expectations hitting a 12-year low. Investors now turn their attention to comments from Federal Reserve officials later today for insights into the monetary policy outlook. Additionally, the focus remains on Friday’s PCE price index report, the Fed’s preferred inflation gauge. The dollar traded flat against most major currencies, but gained some ground versus the Japanese yen.

Brent crude oil futures rose above $73 per barrel on Wednesday, fueled by supply concerns and a sharper-than-expected drop in US crude inventories. On Monday, Trump signed an order allowing 25% tariffs on imports from countries purchasing Venezuelan oil, potentially disrupting flows to key refiners, especially in China, India, and Spain. The Trump administration also extended Chevron's Venezuela exit deadline to May 27, with analysts estimating its withdrawal could cut production by 200,000 bpd. Meanwhile, API data showed that US crude oil inventories fell by 4.6 million barrels last week, surpassing market expectations of a 2.5 million-barrel decrease. However, oil’s gains were limited as the US brokered deals with Ukraine and Russia to halt sea and energy attacks, agreeing to push for some sanctions relief on Moscow—a move that could pave the way for Russian oil to reenter global markets.

WTI crude oil futures rose above $69 per barrel on Wednesday, fueled by supply concerns and a sharper-than-expected drop in US crude inventories. On Monday, Trump signed an order allowing 25% tariffs on imports from countries purchasing Venezuelan oil, potentially disrupting flows to key refiners, especially in China, India, and Spain. The Trump administration also extended Chevron's Venezuela exit deadline to May 27, with analysts estimating its withdrawal could cut production by 200,000 bpd. Meanwhile, API data showed that US crude oil inventories fell by 4.6 million barrels last week, surpassing market expectations of a 2.5 million-barrel decrease. However, oil’s gains were limited as the US brokered deals with Ukraine and Russia to halt sea and energy attacks, agreeing to push for some sanctions relief on Moscow—a move that could pave the way for Russian oil to reenter global markets.

The benchmark KOSPI rose 0.4% to around 2,625 points early Wednesday, reversing losses from the previous session, with chip and auto stocks leading the advance. The index also tracked Wall Street’s overnight gains amid expectations of softer-than-expected reciprocal tariffs from Trump. In South Korea, business sentiment rebounded for the first time in five months in March, but remained pessimistic for the following month due to uncertainties over global trade. Among index heavyweights, chip giant Samsung Electronics gained 0.8%, while its peer SK Hynix surged 1.4%. In the auto sector, Hyundai Motor (3.2%) and sister company Kia Corp (1.4%) extended gains after the auto group unveiled a new US investment plan to help avoid tariffs.

The Nikkei 225 Index climbed 0.7% to surpass 38,000, while the Topix Index added 0.6% to 2,814 on Wednesday, marking their second consecutive session of gains. Japanese stocks followed a strong Wall Street lead overnight, buoyed by hopes of a less aggressive stance on Trump’s reciprocal tariffs. Meanwhile, investors continued to analyze the Bank of Japan’s monetary policy outlook, after minutes from the January meeting suggested that policymakers remain open to further interest rate hikes. Consumer stocks led the advance, with strong gains from Nintendo (5.3%), Sony Group (2.9%), and Fast Retailing (1.2%). Technology also posted notable gains, including Disco Corp (2.3%), Fujikura (1.7%), Dena Co (3.2%), Tokyo Electron (2.1%), and SoftBank Group (0.9%).

Australia's monthly Consumer Price Index (CPI) advanced 2.4% yoy in February 2025, easing from January's four-month high of 2.5%, and below forecasts of 2.5%. It marked the lowest inflation rate since last November, with food prices moderating (3.1% vs 3.3%) mainly due to a softer rise in several grocery items. Also, housing prices rose softer (1.8% vs 2.1%), as rent cost rose the least since March 2023 (5.5% vs 5.8%) and new dwellings climbed at the softest pace since May 2021 (1.6% vs 2.0%) while electricity prices fell faster (-13.2% vs -11.5%), as the impact of state rebates in Victoria. Additionally, prices increased less for clothing (1.8% vs 2.1%), education (5.6% vs 6.5%), and financial services (4.5% vs 5.3%) while transport prices fell for the 1st time in 3 months (-0.9% vs 0.5%), as automotive fuel dropped the most in 3 months. The annual trimmed mean inflation edged down to 2.7%. Excluding volatile items and travel, the CPI rose 2.7%, slowing from a 2.9% gain in January.

US stock futures remained steady on Wednesday following three consecutive sessions of gains. On Tuesday, the Dow edged up 0.01%, the S&P 500 gained 0.16%, and the Nasdaq Composite advanced 0.46%, marking their third straight winning day. Seven of the 11 S&P 500 sectors closed higher, led by communication services, consumer discretionary, and financials. These gains came despite data showing a decline in US consumer confidence, with future expectations dropping to their lowest level in 12 years. Meanwhile, investors continued to assess the potential impact of President Donald Trump’s reciprocal tariffs, set to take effect on April 2. In corporate news, GameStop surged over 8% in extended trading after announcing plans to invest corporate cash into Bitcoin.

New Zealand shares rose 70 points or 0.6% to 12,255 in early trading on Wednesday, extending gains for the fifth straight session and reaching a one-week high. Healthcare, energy minerals, non-energy minerals, and utilities drove the rally, supported by signs of domestic recovery after Wellington emerged from a recession in Q4 2024, aided by lower interest rates and sectoral growth. Investor sentiment also improved after S&P Global Ratings projected that New Zealand, along with several regional nations, would be less affected by US tariffs. On Wall Street, stocks ended higher Tuesday, as trade concerns eased after US President Trump signaled potential exemptions ahead of the April 2 deadline. In Australia, the government unveiled the 2025 federal budget on Tuesday, focusing on cost-of-living relief and economic resilience amid global uncertainty. Some outperforming stocks included Ryman Healthcare (2.8%), Delegat Group Ltd. (1.1%), Freightways Group (0.9%), and Meridian Energy (0.8%).