Cooling inflation in Australia has sparked expectations of a potential rate cut by the Reserve Bank of Australia (RBA), leading to a depreciation of the Aussie dollar and a drop in bond yields. The Australian 3-year yield fell by as much as 8 basis points, reflecting reduced inflation risk and heightened anticipation of lower interest rates. This environment has supported stock market indices like the ASX 200, which climbed approximately 0.6% as investors anticipate declining borrowing costs. Meanwhile, the U.S. Treasury 10-year yield eased slightly to 4.52% ahead of the Federal Reserve's decision, indicating a global shift in interest rate expectations.
In the commodities market, WTI crude futures have remained stable, pausing around $73.60 as of 00:50 on January 29. This stability comes amid a broader wait-and-see approach by investors, who are looking for further economic data and central bank decisions to guide future price movements.