- China approves first imports of Nvidia’s H200 AI chips
- Goldman Sachs: investor risk appetite remains elevated despite geopolitical risks
- BoJ minutes recap: weak yen and labour crunch shape rate hike debate
- Trump may time Fed chair pick with ‘on hold’ January FOMC policy meeting
- Westpac: inflation delivers casting vote for February RBA hike
- ECB’s Cipollone warns geopolitical risks could weigh on euro-area growth
- Three of Australias four biggest banks are forecasting an RBA 25bp rate hike on February 3
- PBOC sets USD/ CNY central rate at 6.9755 (vs. estimate at 6.9231)
- Australian CPI upside surprise boosts case for February 25bp RBA rate hike
- AUD/USD rose to highest since February 2023 after stronger than expected inflation data
- Australian Trimmed Mean CPI quarterly 3.8% y/y (expected 3.6)
- BoJ December minutes signal gradual normalisation as inflation dynamics strengthen
- Bank of England’s Bailey warns against complacency as financial risks evolve
- Trump vows fast signature for year-round E15 gasoline bill
- ICYMI – How Trump trashed the US dollar to a four year low
- I shouldn’t have ignored this: “IMF prepares for global run on US dollar”
- Oil: Private survey of inventory shows a headline crude oil draw vs. build expected
- Economic & event calendar Asia Wednesday, Jan 28, 2026. BoJ minutes. Australian inflation.
- investingLive Americas market news wrap: US consumer confidence falls to 11-year low
At a glance:
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US dollar retraced most of Tuesday’s Trump-driven sell-off
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BoJ minutes showed continued focus on yen weakness and labour-driven inflation
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Australian CPI surprised sharply higher, cementing expectations of an RBA hike
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AUD jumped back above US70¢ as rate pricing firmed
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China approved first imports of Nvidia’s H200 AI chips
The Asia–Pacific session revolved around three main themes.
First was how the US dollar would respond following President Trump’s punching down on the currency during the US session on Tuesday. While the dollar initially extended lower, a scan across major FX pairs shows that much of that move was retraced during the Asia session, suggesting limited follow-through selling once the initial shock faded. Gold, however, continued to rise.
Second were the December policy board minutes from the Bank of Japan. As a reminder, the BoJ ended 2025 much as it began, by delivering a 25bp rate hike, lifting the policy rate to 0.75%, the highest level since the mid-1990s. The minutes contained few major surprises. Policymakers reiterated concerns about the impact of a weak yen and persistent labour shortages on inflation dynamics. Several members highlighted the extent to which currency depreciation is feeding into underlying inflation, reinforcing the Bank’s readiness to tighten further if conditions warrant, while keeping the timing of any follow-up move firmly data-dependent.
The third, and most market-moving, development was Australian inflation data. Both Q4 2025 CPI and December monthly CPI came in hotter than expected. Headline CPI rose 3.8% y/y in December, up from 3.4% previously, while the trimmed mean, the RBA’s preferred core measure, climbed 0.9% q/q, above forecasts and the Bank’s own expectations. Annual core inflation lifted to 3.4%, well above the Reserve Bank of Australia’s 2–3% target band, with domestically generated inflation again the main culprit.
The Australian dollar responded positively, pushing back above US70¢, while market pricing for a 25bp RBA hike on February 3 rose to above 70%, from around 60% previously. Notably, all four major Australian banks now expect a February hike, with ANZ and Westpac joining earlier calls from CBA and NAB.
Elsewhere, China approved its first imports of Nvidia’s H200 AI chips, allocating several hundred thousand units to major domestic tech firms, a selective but notable shift as Beijing prioritises AI development.
Asia-Pac
stocks:
- Japan
(Nikkei 225) -0.54% - Hong
Kong (Hang Seng) +2.21% - Shanghai
Composite +0.49% - Australia
(S&P/ASX 200) -0.20%
This article was written by Eamonn Sheridan at investinglive.com.