Morning wrap (15.02.2023)

• US indices had a volatile session yesterday with higher-than-expected US CPI reading for January triggering wild moves. Ultimately, Wall Street indices finished yesterday's trading mixed

• S&P 500 dropped 0.03%, Dow Jones moved 0.46% lower, Nasdaq added 0.57% and Russell 2000 jumped 0.24%

• Indices from Asia-Pacific traded lower today. Nikkei dropped 0.4%, S&P/ASX 200 traded 1% lower, Kospi dropped 1.5% and Nifty 50 traded flat. Indices from China traded 0.4-1.5% lower

• DAX futures point to a more or less flat opening of the European cash session today

• RBA Governor Lowe told a parliamentary committee that there is a risk that the central bank has tightened policy too much but that there is also a risk that it has not done enough on rates. Lowe said that RBA policy is restrictive already but he cannot say how high rates will peak

• People's Bank of China left its 1-year MLF rate unchanged at 2.75%, suggesting that 1- and 5-year Loan Prime Rates will also be left unchanged when PBOC makes decision on February 20, 2023

• Canada decided to ban all research grants for sensitive projects that involve at least one researchers working on the project is in some way affiliated with Chinese military and state security institutions

• API report pointed to a massive 10.51 million barrel build in US oil inventories (exp. +0.2 mb)

• Cryptocurrencies are trading mixed - Bitcoin and Ethereum drop 0.3% each while Dogecoin jumps over 3% and Litecoin adds 1.6%

• Energy commodities trade lower - Brent drops 0.8%, WTI trades 0.9% lower and US natural gas prices decline 2%

• Precious metals trade mostly lower - gold, silver and platinum trade around 0.6% lower each while palladium gains 0.6%

• USD and JPY are the best performing major currencies while AUD and NZD lag the most

AUDUSD is pulling back amid USD strengthening and cautious remarks delivered by RBA Governor Lowe. The pair has erased all of the gains made earlier this week and is now testing support zone marked with 50% retracement of the downward move started in April 2022. Source: xStation5