Market Summary - RBNZ Holds, Yen Falls, and Copper Steals the Spotlight
Date: 09 July 2025
Overview
The trading day has been marked by significant macroeconomic developments, particularly concerning inflation data from China and the Reserve Bank of New Zealand's (RBNZ) interest rate decision. The market is also reacting to political statements from Donald Trump regarding trade policies.
Inflation Data from China
China's inflation data presented a mixed picture. The Consumer Price Index (CPI) exceeded expectations, indicating stronger consumer inflation, while the Producer Price Index (PPI) fell short of forecasts. This divergence has left investors uncertain about China's economic trajectory in the near term.
RBNZ Interest Rate Decision
The RBNZ decided to maintain its interest rate at 3.25%, a move that was anticipated by the market and mirrored the earlier decision by the Reserve Bank of Australia (RBA). As a result, there was no significant market volatility following the announcement.
Upcoming Events
Attention is now turning to the upcoming release of the Federal Open Market Committee (FOMC) meeting minutes, which are expected to provide insights into potential future rate cuts. Traders are keen to analyze any shifts in the language used by the Fed.
Political Developments
Donald Trump has re-emerged in the news, advocating for interest rate cuts by Jerome Powell and hinting at new trade policy actions. He announced that seven countries would be "released" from certain trade decisions, with more announcements expected later in the day. This development is closely monitored by the market as it could impact trade relations.
Currency Market Movements
The Japanese yen has been the weakest currency today, experiencing a notable decline. In contrast, the Australian dollar, British pound, and U.S. dollar are showing strong performance, reflecting solid intraday momentum.
Commodity Highlights
Copper has emerged as a standout commodity, surging approximately 10% over the past two days, marking it as one of the most significant movers of the week. Oil prices are also on the rise, continuing their upward trend. Conversely, gold is under pressure, losing ground and becoming one of the weaker assets in the current session.
Equity Indices Performance
The performance of equity indices is mixed, with futures showing a sideways drift and lacking clear direction. The DAX index had a strong performance yesterday, while U.S. indices have been more sluggish, indicating a divergence between European and U.S. markets. However, the overall mid-term trend for global equities remains bullish.