Daily Market Commentary 10th November 2023

Markets went sideways overnight, with equities trading lower, while bond yields remained steady. Federal Reserve Governors were out and about talking interest rates, with both Bowman and Barkin, confirming inflation remained too high and there may be further interest rate rises. This is contrary to what markets are betting on, as the latest Fed ‘pause’ triggered speculation of ‘peak interest rates’. Markets now await a speech from Federal Reserve Chair Powell, to give further insights to future monetary policy. The US Dollar remained steady, with the EUR trading around 1.0700, while the GBP holds above 1.2250.

The static reserve allowed commodity currencies to consolidate, with the AUD holding 0.6400, while the NZD builds above 0.5900. Local markets were uninterested in the Chinese inflation numbers, which confirmed none existed, with both PPI and CPI remaining in negative territory. Markets now await todays Monetary Policy Statement from the RBA and NZ Business PMI.