Asian equity markets reach for record highs, following the quiet of Lunar New Year celebrations, while US share markets build again towards record levels. The disruptions of AI, tariffs realignment and the rising tensions in the Middle East, appear to be side-lined. The State of the Union address confirmed the trade policy of the USA and was extremely bullish on the progress of the US economy. The US Dollar was softer, with the EUR trading around 1.1800, while the GBP built above 1.3500.The weaker reserve allowed for gains in commodity currencies, with the NZD heading back towards 0.6000, while the AUD broke back above 0.7100. Australian inflation come in hotter than expected, with the CPI at 3.8%, well above the desired trading range. The RBA Governor was very cautious about inflation and the state of the economy, which may be headed to further rate rises.
