(1) The Australian dollar and the New Zealand dollar had a good time on Tuesday, waiting for the latest US inflation data. (2) AUD/USD hovered at $0.6601 and rebounded between $0.6586 and $0.6629 overnight. The main resistance level is at $0.6650 and the support level is at $0.6558. (3) NZDUSD found supporting near $0.6010 and rose to 0.6022. The main technical levels are in the $0.6040/50 zone and $0.5982. (4) Australia's Labor government will unveil its annual budget later on Tuesday and say cost-of-living relief measures will temporarily drop consumer price inflation. (5) Australian Treasurer Chalmers said that the current headline inflation rate of 3.6% may return to the Central Bank's 2%-3% target range by the end of this year, while the Central Bank itself forecasts an inflation rate of 3.8%. (6) If true, this slowdown could open the door for the RBA to cut rates earlier. (7) Rodrigo Catril, senior forex analyst at the National Australia Bank (NAB), said that "this may drop headline inflation, but unless these measures are permanent, the Central Bank of Australia is likely to shy away from them". (8) The market still sees a 15% chance of a next Intrerest Rate hike and believes that easing is almost impossible this year

The report by PwC and the Alternative Investment Management Association (AIMA) said that the proportion of traditional hedge funds investing in crypto assets has fallen from 37% in 2022 to 29% this year. It added that a quarter of investors who are currently invested say that increased uncertainty over regulation of the sector in the United States could lead them to reconsider the asset class. Last year's market events influenced more than 70 percent of investment decisions among the 59 hedge funds surveyed, which collectively manage $280 billion in assets. Despite a steady recovery in bitcoin prices this year, investors remain cautious as U.S. regulators step up a crackdown on what they say is an industry-wide culture of lawlessness. AIMA chief executive Jack Inglis said: “The digital asset space has had to deal with shortcomings in its fundamental operations, including risk management, and allegations of corporate misconduct.”

There are some signs of de-dollarisation, but the greenback should maintain its "substantial usage" for the foreseeable future, currency strategists at JPMorgan said in a note. "Overall usage of the dollar remains within historical ranges across all indicators, with the greenback leading the way, but actual usage has diverged," wrote the bank's strategists Meera Chandan and Octavia Popescu. Its share of volume is just shy of its all-time high of 88%, while the euro's share has shrunk by 8 percentage points over the past decade to an all-time low of 31%. Meanwhile, the yuan's weighting has risen to a record high of 7%. "De-dollarization is evident in foreign exchange reserves, where the dollar's share has fallen to a record low as it falls in exports but is still rising in commodities," the strategists said