US major stock indices rallied to fresh all-time highs on Wednesday boosted by upbeat earnings.
Wall Street’s risk-on tone reflects an improved economic outlook. US Covid cases have been declining, albeit remain high. The Biden administration plans on 100 million Covid vaccine doses being administered within the next 100 days.
Markets are also pricing in a $1.9 trillion stimulus package
Asia-Pacific markets are expected to trace Wall Street higher.
A Bank of Japan interest rate decision will be in focus. Analysts largely expect the BoJ to hold rates steady at -0.1%, although the economic forecasts could still be adjusted.
Australian Jobs Report
AUD / USD saw a small negative reaction to December’s jobs report. The employment change printed at 50k, in line with forecasts. The unemployment rate dropped to 6.6% from 6.8%.