US equity markets stabilised on Friday, following a day of mayhem on equity and commodity markets. The impact of AI on industry sectors, is now coming under the spotlight and the effect on the labour force, is not positive. Software, Logistics and Real Estate are all considered fair game for the impact of AI. This will spread through most sectors as the impact on the workforce is considered. US CPI inflation came in lower than expected, 2.4%, encouraging the Fed to ease rates further. This coming week will have a slow start, as the US celebrates the Presidents Day long weekend and China has the major annual Holiday of lunar New Year, for the entire week. The US Dollar ended the week softer, with the EUR recovering to 1.1880, while the GBP regained 1.3650.
The big spike in the AUD earlier in the week continued to unwind, with the AUD retreating back to just under 0.7075, while the NZD hovered just under 0.6050. The RBNZ is expected to leave rates unchanged, in the coming week, although the associated commentary may impact the currency direction.
