Pension Funds Boost Australian Dollar, Oracle Surges Nearly 10% | EBC Global Focus

On Tuesday (February 10th), the US Dollar fell sharply ahead of a series of upcoming economic data releases that will influence the interest rate path, while the Australian Dollar remained resilient.

A large Australian pension fund stated that the Australian Dollar is undervalued as the country's central bank begins tightening interest rates, while most major economies are keeping rates steady or preparing to cut them.

Analysts pointed out that increased buying of the Australian Dollar by pension funds to hedge their international equity portfolios could push the exchange rate higher. Currently, Australia's benchmark government bond yield is the highest among G10 nations.

Although the country's third-quarter economic growth rate fell short of analysts' expectations, it was the highest growth rate in nearly two years. The Reserve Bank of Australia stated that large-scale artificial intelligence investments will drive economic productivity gains.

On Monday, iron ore prices fell below USD 100, with signs of market oversupply becoming increasingly apparent. Chinese steel mills are cutting production year-on-year, while Australian and Brazilian miners are expanding iron ore output.

Bank of America noted that the US Dollar may still have room to fall, as structural challenges have not fully materialized, such as the Federal Reserve's dovish pivot and the lagged effects of the trade war.

The Australian Dollar once again failed to break through the USD 0.71 level, facing the risk of forming a double-top pattern. It is expected to retest the recent low of USD 0.7056 in the short term before challenging resistance levels again.

Hot Product Briefing

As of the close on February 9th, among EBC's main products, Oracle's stock price led gains due to analyst rating upgrades. The market refocused on the company's AI partnerships and large-scale capital operations.

Marsh & McLennan's stock price hit a 52-week low, but Goldman Sachs raised its target price to USD 203, maintaining a neutral rating, citing the company's organic growth and modest improvement in operating margins.

Despite the rally coming to an abrupt halt, banks and asset management institutions like Deutsche Bank and Goldman Sachs remain optimistic about gold's recovery prospects, as long-term demand drivers persist, including the trend of safe-haven capital shifting away from the US market.

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