China Stimulus Fuels Asian Rally, But Market Caution Persists on US Outlook
| Action Insight Daily Report 3-17-25 |
China Stimulus Fuels Asian Rally, But Market Caution Persists on US Outlook |
Asian markets opened the week on a positive note, buoyed by stronger-than-expected economic data from China and optimism surrounding Beijing’s latest efforts to boost domestic consumption. Investors welcomed China’s “special action plan” aimed at stimulating household spending, which aligns with Premier Li Qiang’s government report last week that named consumption growth as a top priority. The latest measures also follow commitments from financial regulators to ease consumer credit quotas and loan terms, signaling a broad push to inject liquidity into the economy and support consumer demand. While the plan does not appear to introduce any groundbreaking new policies, its classification as an “action plan” suggests that concrete steps at the local level will soon follow. Given past challenges in reviving domestic demand, this structured approach offers hope that implementation will be more effective than previous, less-defined efforts. Investors appear to be cautiously optimistic that China’s stimulus measures will help stabilize growth, particularly amid continued weakness in real estate and private investment. Meanwhile, US futures are trending lower, reflecting growing fears of an impending economic slowdown. Treasury Secretary Scott Bessent’s remarks over the weekend did little to reassure investors, as he acknowledged that there are "no guarantees" the US will avoid a recession. While Bessent emphasized the need to transition away from excessive government spending, his comments about market corrections being “healthy” and his dismissal of recent stock market losses failed to inspire confidence. His focus on tax policy, deregulation, and energy security was seen as a long-term strategy rather than an immediate remedy for economic concerns.... |
AUD/USD Daily Report Daily Pivots: (S1) 0.6292; (P) 0.6312; (R1) 0.6345; More... Intraday bias in AUD/USD remains neutral first as range trading continues. On the downside, break of 0.6186 will target 0.6087 support first. Firm break there will resume whole decline from 0.6941. On the upside, sustained break of 0.6407 will resume the rebound from 0.6087 to 100% projection of 0.6087 to 0.6407 from 0.6186 at 0.6506, even still as a corrective move. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 21:30 | NZD | Business NZ PSI Feb | 49.1 | 50.4 | | 00:01 | GBP | Rightmove House Price Index M/M Mar | 1.10% | 0.50% | | 02:00 | CNY | Industrial Production Y/Y Feb | 5.90% | 5.30% | 6.20% | | 02:00 | CNY | Retail Sales Y/Y Feb | 4.00% | 3.80% | 3.70% | | 02:00 | CNY | Fixed Asset Investment YTD Y/Y Feb | 4.10% | 3.20% | 3.20% | | 12:15 | CAD | Housing Starts Y/Y Feb | 249K | 240K | | 12:30 | USD | Empire State Manufacturing Index Mar | -1.9 | 5.7 | | 12:30 | USD | Retail Sales M/M Feb | 0.70% | -0.90% | | 12:30 | USD | Retail Sales ex Autos M/M Feb | 0.50% | -0.40% | | 14:00 | USD | NAHB Housing Market Index Mar | 43 | 42 |
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