Tue, Dec 01, 2020 @ 23:25 GMT
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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) Statement by Philip Lowe, Governor: Monetary Policy Decision

At its meeting today, the Board decided to maintain the current policy settings, including the targets of 10 basis points for the cash rate and the yield on 3-year Australian Government bonds, as well as the parameters of the Term Funding Facility and the government bond purchase program. Globally, the...

RBA Remains Cautiously Optimistic with Better-than-Expected Recovery, Pledged to Do More if Needed

As widely expected RBA left all the monetary policy measures unchanged in December. While acknowledging the “better-than-expected” economic recovery, the members reiterated that the outlook remains dependent on policy support. On economic developments, the central bank noted that “the economic recovery is under way and recent data have generally been...

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...

RBA Preview: Cautiously Optimistic over Recovery; QE Expected to Increase Further in 2021

After some big moves in November, we believe the RBA will stay put at this week’s meeting. Given the good news about vaccine and the steady decline in the country’s coronavirus cases and, we do not feel surprise if the members turn more upbeat this month. Economic data released since...

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...

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...

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...

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...

Aussie Dips Despite Sharp Job Data

The Australian dollar has dipped lower in the Thursday session. Currently, AUD/USD is trading at 0.7268, down 0.50% on the day. Sparkling job numbers, but Aussie falls There was excellent news on the employment front in October, as the economy created a whopping 178.8 thousand jobs, crushing the forecast of -26.7...

Yen Mildly Higher in Subdued Markets, Dollar and Euro Soft

Dollar and Euro are both trading mildly lower in a relatively subdued, consolidative markets today. Yen and Kiwi are, on the other the stronger ones. There is no clear sing of range breakout yet. Pfizer provided another piece of upbeat news on coronavirus vaccines. The final results from late-stage...

AUD/USD Slightly Higher After RBA Minutes

The Australian dollar has posted slight gains on Wednesday, recovering the losses seen on Tuesday. Currently, AUD/USD is trading at 0.7322, up 0.31% on the day. RBA says easing yes, negative rates no The Reserve Bank of Australia released the minutes of its November policy meeting on Tuesday, but the Australian...

Markets Turned into Consolidations, Gold Weakness Might Help Dollar

The financial markets generally turned into consolidation for now as vaccine boost faded. Commodity currencies are mildly softer in Asian session, together with Dollar. On the other hand, Swiss Franc and Yen are the firmer ones, together with Sterling. For the week, Dollar is the weakest one for now,...

RBA Lowe sees tremendous opportunities to broaden out markets from China

RBA Governor Philip Lowe said it's "incredibly mutually advantageous" for Australia and China to keep the strong trading relationship in place. But he also emphasized "over time there is tremendous opportunities to broaden out our markets". "Australia is in a fantastic location on the globe," he added. "We are close...

Dollar Recovering as Stocks Digest Gains, But European Majors Stronger

Global stock markets are paring some of yesterday's strong gain, together with slight pull back in oil price. The development translates into mild weakness in commodity currencies. Yet Dollar is not gaining much for now, as it's overshadowed by the rally in European majors and Yen. But for now,...

No Range Breakout in Dollar Yet Despite Vaccine Optimism

Vaccine optimism pushed DOW to new record high overnight and positive sentiment continues in Asian session. Dollar, Yen and Swiss Franc are the weaker ones, while commodity currencies are strongest. Though, major pairs and crosses are generally bounded inside last week's range. That is, Dollar and Yen are holding...

RBA Minutes; No Surprises; Clear Themes

The RBA has clearly signalled the overriding importance of the labour market and the evolution of the pandemic to policy outcomes. The minutes of the Reserve Bank Board meeting for November contain no new insights. That is not surprising given that we have seen the Governor’s post meeting Statement, including...

RBA Minutes Affirm that Future Monetary Policy will Rely on QE

The RBA minutes for the November contained little news. After cutting the policy to a new low of 0.1%, policymakers suggested the policy tool in the future will mainly be asset purchases. While the members remained reluctant to lower interest rates to negative, they might have to follow if...

AUDUSD Looks Towards September Highs

The US Dollar was under pressure against all of its major pairs on Monday. On the US economic data front, Empire Manufacturing unexpectedly dropped to 6.3 on month in November (13.5 expected), from 10.5 in October. On Tuesday, Retail Sales Advance for October is expected to increase 0.5% on month,...

RBA minutes: Focus ahead would be government bond purchase program

Minutes of the November 3 RBA meeting noted that the board is "prepared to do more if necessary", after delivering a package of additional stimulus. Though, "focus over the period ahead will be the government bond purchase program". Under the current program to purchase longer-dated bonds, RBA would buy nominal...

(RBA) Minutes of the Monetary Policy Meeting of the Reserve Bank Board

Videoconference – 3 November 2020 Members Participating Philip Lowe (Governor and Chair), Guy Debelle (Deputy Governor), Mark Barnaba AM, Wendy Craik AM, Ian Harper AO, Steven Kennedy PSM, Allan Moss AO, Carol Schwartz AO, Catherine Tanna Others Participating Luci Ellis (Assistant Governor, Economic), Christopher Kent (Assistant Governor, Financial Markets), Marion Kohler (Head, Domestic...

AUD/USD Higher on Strong Chinese Data

The Australian dollar hasn’t missed a beat on Monday after posting gains on Friday. Early in North American trade, AUD/USD is trading at 0.7296, up 0.45% on the day. China Industrial Production rises One factor which is in the Australian dollar’s favor is the improving Chinese economy. China is Australia’s largest...