Daily Market Commentary 10th February 2023

German inflation numbers remain stubbornly high, rising 1% for January and 8.7% on an annualised basis. Inflation remains a serious problem, while the ECB has assured markets they will continue aggressive measures to combat this most destructive of taxes. Equity markets turned negative in the US trading session, with various Federal Reserve Board members confirming solidarity on their hawkish monetary policy. The EUR inched back to 1.0750, while the GBP pushed back above 1.2100.

Commodity currencies settled after recent losses, with the AUD holding above 0.6900, while the NZD consolidating over 0.6300. Local markets await the release of the RBA minutes, which may hint at the plan to address the shock 7.8% December inflation number? In NZ Credit Card Spending will give a clue to the consumers health, while Japanese PPI numbers will give a window into inflationary pressures in the economy.