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Aussie on Hold ahead of GDP

The Australian dollar has recorded small gains in Tuesday trade. Currently, AUD/USD is trading at 0.7349, up 0.08% on the day. RBA stays the course As widely expected, the Reserve Bank of Australia remained on the sidelines at its final policy meeting of the year. After a busy November meeting, the...

Stocks Start the Month Strong, But No Downside Breakout in Dollar Yet

Yen and Dollar are generally softer today as markets open December on firm footing. Australia Dollar is following as third weakest as diplomatic tension with China worsens. On the other hand, Euro is leading Swiss Franc higher. Manufacturing data from China and UK indicate sustainable recovery for now, while...

Asia Supported On Robust Caixin Survey, RBA Delivers No Surprises, Powell On Tap

Asian equity markets higher on Moderna, Chinese PMI Global equities are starting December nicely after both Moderna takes the next step in getting its COVID-19 vaccine authorized and China’s Caixin PMI surged to a 10-year high, as external demand impresses. Shanghai soars following the private survey release, leading the gains...

ISM’s Will Remain Strong In November, Boosted By The Removal Of Election Uncertainty

Markets The dollar's intraday slide ended after US investors entered dealings. The trade-weighted greenback reached its softest level in more than 2 years' time with EUR/USD touching the 1.20-mark only the second time since April 2018. There wasn't much news to guide trading with (US) investors possibly making some last-ditch...

Australian Dollar Rises As RBA Leaves Interest Rates Unchanged

The Australian dollar rose slightly after the RBA delivered its final interest rate decision of the year. The bank left interest rates at zero and announced that it would continue with its asset purchases to support the economy. Members also hinted that they will not hike interest rates any...

RBA stands pat, prepared to more if necessary

RBA left monetary policy unchanged as widely expected. Cash rate target and 3-year AGS yield target are kept at 0.10%. The parameters and term funding facility and government bond purchases were maintained too. It continued to expect no increase in cash rate for "at least 3 years". Bond purchase...

Australia AiG manufacturing dropped to 52.1, but recovery prosect continues

Australia AiG Performance of Manufacturing Index dropped -4.2 pts to 52.1 in November, indicating expanding conditions at a slower rate. Looking at some details, all seven activity indices declined. Production dropped -2.6 to 52.5. Employment dropped -2.5 to 52.8. New orders dropped -5.1 to 53.3. Exports dropped -2.7 to...

Currency Pair of the Week: GBP/AUD

The main driver of the Pound this week will continue to be Brexit.  Officials are meeting in London to discuss a trade-deal, however as each day passes towards the end of the year, hopes fade more and more that a deal will get done.   The first positive signs in...

Is 74 Line Next For The Aussie?

The Australian dollar is calm in Monday trade. Currently, AUD/USD is trading at 0.7386, down 0.02% on the day. Aussie posts excellent November The Australian dollar gained 1.1% last week and has posted an outstanding November, with gains of 4.8%. The US dollar has been in a prolonged slump, and cyclical...

Week Ahead – We Go Again

A busy end to a chaotic year December may normally be associated with everything slowing down as we ease our way into the festive period but as with everything else in 2020, this is no normal December. Donald Trump is continuing to fight the election result and is going out...

RBA Meeting: A More Optimistic Take

The Reserve Bank of Australia will hold its final meeting for the year at 03:30 GMT Tuesday. Having cut rates last month, no action is expected this time, so the market reaction will depend on the language of the accompanying statement. Economic data have improved lately and vaccines have...

Week Ahead – Data Overload May Spoil Vaccine Euphoria; NFP to Lead the Pack

It’s NFP week and as investors battle the vaccine optimism against the short-term gloom, the latest jobs report from the United States may determine which way sentiment sways next. Canada will also publish jobs numbers along with its Q3 GDP print. The Reserve Bank of Australia, meanwhile, will kick...

Bitcoin Hits Record High

With US markets closed for Thanksgiving, financial markets were quiet. One “financial market,” if you can call it that, that did see some emotional volatility overnight, was bitcoin. Having touched a new high of USD9,490.00 on Tuesday, the overnight session saw the digital currencies fortunes rapidly reverse. Bitcoin fell...

China Tariffs Weighs On Australian Stocks

Australian stocks wilt under China trade onslaught US markets were closed on Thursday for the Thanksgiving holiday, and market activity has been muted. US equity futures are almost unchanged today, providing little direction for Asia. Apart from China, the rest of the region appears content to lighten positioning, which has...

Cliff Notes: A Holiday Season Unlike Any Other

Key insights from the week that was. This week saw the release of Australian partial data related to next week’s Q3 GDP report. Meanwhile, in the US and Europe, the focus remained on COVID-19’s spread and how it can be suppressed. The construction work done survey was the first of two...

Dollar and Yen Stay Weak in Quiet Pre-Holiday Trading

Markets are generally rather quiet in Asian session today, with Thanksgiving holiday in the US in sight. Risk markets are taking a breather after the earlier rally, so do the selloffs in Dollar, Yen and Swiss Franc. Nevertheless the trio remain the weakest ones for the week. On the...

Australia total private capital expenditure dropped -3% in Q3

Australia total new capital expenditure dropped -3.0% in Q3 to AUD 25.85B, hitting the lowest level since 2007. Buildings and structures expenditure dropped -3.7% to AUD 13.76B. Equipment, plant and machinery expenditure dropped -2.2% to AUD 12.09B. Full release here.

Aussie Dips on Soft Construction Data

The Australian dollar has dipped lower in the Wednesday session. Currently, AUD/USD is trading at 0.7359, down 0.15% on the day. Aussie rally fizzles as construction work declines The Australian dollar has taken a pause on Wednesday, after a huge gain of 1.0% a day earlier. The culprit was a soft...

Australian Q3 Capex Eyed Ahead Of GDP Data As Aussie Flies On Vaccine News

The Australian dollar is moving slightly higher against the US dollar over the last month as investors are waiting for the capital expenditure data for the third quarter on Thursday at 00:30 GMT ahead of the GDP figure on December 2. In the meantime, the aussie is forming a...

Euro Resilient Despite Deterioration Business Expectations, Dollar Mixed

Commodity currencies remain the strongest one for today with help from risk-on markets. Euro is also firm, shrugging off deterioration in business expectations as indicated by Ifo's data. Though, selling is focusing on Swiss Franc and Sterling for now. Dollar dropped notably earlier today but there is no clear...

NZD Surges on RBNZ Expectations, Dollar Rebound Short-Lived

Commodity currencies surge broadly today on the back of strong risk appetite, especially in Japan. New Zealand Dollar is additionally boosted after the government asked RBNZ to considering surging house prices in monetary policy moves. Dollar tried to rebound overnight, with the help from downside breakout in Gold. The...

RBA Debelle: Decline in interest rates across yield curve has lowered exchange rate

In a speech, RBA Deputy Governor Guy Debelle said the comprehensive package of measures implemented through this year "has materially lowered the structure of interest rates in the Australian financial system". Additionally, "the decline in interest rates across the yield curve has lowered the exchange rate, relative to what...

Sterling Accelerates Higher on Vaccine News, Dollar Resumes Selloff

Dollar's selloff resumes today as stocks rallies on more positive news on coronavirus treatment. British drugmaker AstraZeneca said it's vaccine could be around 90% effective, and as many as 200 millions doses could be ready by year end. The news also lifts Sterling to be the best performer so far...

Sterling Rises on Trade Deal News, Dollar Soft

Sterling opens the week on firm footing as lifted by UK's trade deal with Canada. There's also report on increasing expectation of a deal with EU to be sealed this week. New Zealand Dollar is also firm after strong Q3 retail sales rebound. On the other hand, Dollar, Yen...

Australia PMI manufacturing rose to 35-month high

Australia CBA PMI manufacturing surged to 56.1 in November, up from 54.2, hitting a 35-month high. PMI Services rose to 54.9, up from 53.7, a 4-month high. PMI Composite rose to 54.7, up from 53.5, also a 4-month high. Bernard Aw, Principal Economist at IHS Markit, said: "Latest PMI data...

Week Ahead: US Thanksgiving and Another Brexit Deadline

Traditionally,  Thanksgiving week in the US tends to be more on the quiet side.  With the holiday on Thursday and a half day on Friday, many people take some or all of the week off.  However, as we have seen so far in 2020, this year is different.  While...

Week Ahead – Let the Battles Commence

Focus back on fiscal response It appears we’re moving seemlessly from one major risk to another at the moment in the markets. The election is still technically live, Covid is spreading like wild fire and battles are commencing in Washington and Brussels as households and businesses line up for support...

Expect US Treasury Rates to Rise and Curves to Steepen in 2021

The success of vaccine tests ; Australia's current strong growth story; and pivots around monetary policy are highly relevant to the market outlook. The approach to monetary policy in Australia is changing. In his speech last Monday, the Governor neatly set out the four aspects of current policy. The nature...

Strong Retail Sales Data from Canada and UK Ignored

Dollar would probably end as the worst performing for the week, followed by Yen and Swiss Franc. But they're generally staying familiar range, like other major pairs and crosses. Investors are struggling to decide on a direction, despite the news of vaccines, or the split between US treasury and...

Consolidations Continue in Mixed Markets, Dollar Downside Breakout in Favor

Consolidation trading continues with US stocks closing mildly higher overnight while Asian markets are mixed. Gold also lost some downside momentum just ahead of 1850 key support level. In the forex markets, range trading continues in general with Aussie and Sterling gaining some grounds today. Yen and Canadian are...