Talking Points:

  • Asian stocks traded mixed as investors mulled the latest Federal Reserve communication
  • The path remains open to three more rate hikes this year, some investors see more
  • The US Dollar got a lift.

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Many Asian stocks tracked Wall Street down on Thursday. Stateside markets took a hit in the previous session from Federal Reserve policy meeting minutes which left multiple furher interest rate increases very much on the cards.

The Nikkei 225 ended down 1.1% with South Korea' s Kospi and Hong Kong's Hang Seng also down, if not by much. The Shanghai Composite was higher into its close, having just reopened after the long Chinese Lunar New Year break. The ASX 200 is Sydney was up by 0.1% after a choppy session.

The US Dollar started the session trading broadly higher as investors took in the Fed minutes, however it failed to hold its gains against some currencies through the Asians session and DailyFX Chief Currency Strategist John Kicklighter wonders whether there’s really enough risk appetite ‘fuel’ for a real Dollar turnaround.

Gold prices slipped as they often do when the prospect of higher US interest rates is front and centre. Higher Treasury yields generally take a toll on appetite for the non-yielding metal. Oil prices were down too on that firmer greenback.

There are plenty of economic data releases still to come Thursday. Germany’s Ifo Business survey is first up, followed by official Gross Domestic Product numbers out of the UK. The European Central Bank will publish its account of the last monetary policy meeting too. From the other side of the Atlantic will come US jobless-claim figures and the Canadian retail sales release.

--- Written by David Cottle, DailyFX Research

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