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Equity Rally Weighs On US dollar

Although the US dollar rallied overnight, the dollar index rising 0.10% to 94.13, those gains have been quickly erased in Asia as equity markets have jumped higher. The dollar index has retreated to 93.88, and notably, has failed at its 100-day morning average (DMA) at 94.22. With Manufacturing PMIs...

Are We There Yet?

All eyes on the US election The answer is almost! The most divisive election in Western democratic history commences today as those Americans who haven’t voted head to the polls. Results will start flowing in through the morning tomorrow in Asia, which should make for a friskier than usual session....

RBA Board Cuts Rates; Adopts Aggressive QE Policy

The RBA Governor has opened up the prospect of further QE having already decided on a policy which is more aggressive than expected. As expected the Reserve Bank Board decided to cut the cash rate target from 0.25% to 0.1%; cut the target yield on the 3 year bond from...

RBA Lowe: We’re not out of firepower, but negative rate still extraordinarily unlikely

In the post meeting press conference, RBA Governor Philip Lowe said " it would be incorrect to conclude that we are out of firepower" after today's package of easing measures. He emphasized the central bank still has a "range of tools", including " further liquidity provision, asset purchases and...

RBA Cuts Rates and Increases QE Purchases for at Least 6 More Months

As expected, RBA announced further monetary easing at today’s meeting. RBA cut the cash rate to 0.1%, from 0.25% previously. Similarly, the target for the yield on the 3-year government bond yield and the interest rate on new drawings under the Term Funding Facility were also lowered to 0.1%....

Australian Dollar Weakens after RBA Rate Cut, Canadian Rebounds with Oil Price

Asian Markets rebound notably today, following the strong close in US overnight. Canadian Dollar staged a U-turn, following the path of oil price. Australian Dollar is trading generally lower today following RBA's easing announcement. Yet, downside is relatively limited, expect versus a few. Dollar has turned mixed, together with...

RBA cut rate to 0.1%, to purchase AUD 100B of bonds of 5- to 10-yr maturity

RBA announced a package of policy action today, as widely expected. The package includes: Cut in cash rate target to 0.1% Cut in 3-year AGS yield target to around 0.1% Cut in Term Funding Facility interest rate to 0.1% Cut in Exchange Settlement balances rate to 0% Purchase of...

(RBA) Statement by Philip Lowe, Governor: Monetary Policy Decision

At its meeting today, the Board decided on a package of further measures to support job creation and the recovery of the Australian economy from the pandemic. With Australia facing a period of high unemployment, the Reserve Bank is committed to doing what it can to support the creation...

AUD/USD Gains Ground ahead of RBA

The Australian dollar has started off the trading week with gains. In North American trade, AUD/USD is trading at 0.7047, up 0.30% on the day. It was a rough week for the Aussie, as AUD/USD fell by 1.5 per cent. The pair touched a weekly low of 0.7002, its lowest...

Upbeat China PMI Lifts Mood But Dollar Holds Firm

Stocks edge up as Chinese manufacturing rebound gathers pace in October But dollar maintains gains as US election and Fed meeting lurk around the corner Pound slips as England back in lockdown, aussie down ahead of RBA Calm before the storm? Equities got off to a somewhat positive start on...

Dollar Firm into a Week of Election, Fed and NFP

Dollar and Yen strengthen in general in Asian session today even though risk sentiments are not bad, as seen in rally in major indices. Solid data from China was enough to offset the pessimism over lockdowns in Europe, and the steep decline in oil prices. Sterling is currently the...

RBA Preview – Expecting New Easing Package of Rate Cuts and QE Expansion

It is widely anticipated that RBA will announce more easing measures at this week’s meeting. The package of measures will likely include a rate cut to 0.1% and expansion of the yield curve control program with the focus on 5-10 year bonds. Economic Development since October Economic data released since the...

Week Ahead – US Election, Three Central Banks, and Nonfarm Payrolls

It is probably the busiest week ever for markets. The US presidential election will eclipse everything else, but there are several other crucial events like a Fed meeting and nonfarm payrolls to follow the main dish. The Bank of England and the Reserve Bank of Australia will decide as...

Australia: Rate Cuts; More QE; Lower Unemployment

The Reserve Bank Board meets next week on November 3. The Bank will also release its November Statement on Monetary Policy on November 6 where it will provide detailed colour around the policy decisions and print its revised growth forecasts. The Bank has not updated its forecasts since August...

AUD/USD Calm ahead of Aussie CPI

The Australian dollar is showing limited movement in the Tuesday session. In North American trade, AUD/USD is trading at 0.7133, up 0.14% on the day. Australia CPI on center stage The Australian dollar has shown limited movement for almost a week. The lack of activity could change early on Wednesday, when...

Dollar Shrugs Strong Durables, Softer in Tight Range

Dollar weakens again today but stay in very tight range as indecisive trading continues. The stronger than expected durable goods orders were are ignored by the markets. White House's comment that stimulus deal will be there in "coming weeks" is also shrugged off. Swiss Franc is following Dollar is...

RBA Debelle: Economy probably recorded positive growth in Q3, rather than negative

RBA Deputy Governor Guy Debelle told Senate that the first recession in 30 years could have already ended in Q3. "At the moment our best guess is it looks like the economy probably recorded positive growth rather than negative," he said. "The strength elsewhere in the country was more than...

Nov 3 ‘Double Header’ to Keep A$ on Backfoot?

The prospect of a huge RBA policy move coming just hours before polls close in the US on November 3 adds to the risks that this “Double Header” event may yet push the A$ below 0.70, at least in the short term, though record Chinese steel production driving strong...

The Waiting Game Continues

Stimulus bill deadline expires House Democrat Leader Pelosi’s Tuesday deadline for a pre-election US stimulus bill came and went overnight, with a deal remaining elusive. However, the fallout was limited to non-existent, as Ms Pelosi said that talks continued with Mr Mnuchin and that progress was being made. Financial markets...

Aussie Pairs Nearing Key Support: AUD/CAD, AUD/JPY, AUD/USD

The Reserve Bank of Australia’s (RBA) Kent spoke last evening and hinted that the central bank is considering further easing in monetary policy.  This comes after the RBA recently said that they are considering buying longer term bonds to help keep yields low.  As a result, the Aussie has...

AUD/USD Slips on Dovish RBA Minutes

The Australian dollar has registered considerable losses on Tuesday. In North American trade, AUD/USD is trading at 0.7028, down 0.57% on the day. RBA minutes send Aussie lower The Australian dollar finds itself under strong pressure. AUD/USD fell to a low of 0.7027 on Tuesday, its lowest level since September 28th....

Euro and Swiss Franc Rally as Markets Expect More Negative Rates Elsewhere

Markets continue to be dominated by strength of Euro and Swiss Franc today. That comes in spite of surging coronavirus infections in Europe. Meanwhile, the deadlock of Brexit negotiations remain. Traders are apparently adding to bet that more global central banks, like RBA and BoE, are joining the negative...

Stimulus Uncertainty Hits Sentiment, RBA Flags More Easing

US stimulus talks make progress but short time window spooks investors Aussie slips as RBA gives clearest indication yet it will ease policy soon Pound steady despite endless brinkmanship in Brexit talks Stimulus deal getting closer but may come too late Talks in the United States on a new round...

Aussie Bears in Control on RBA, Euro Strength Continues

Australia's Dollar's decline is resuming today as RBA minutes, as well ass comments from a top official solidify the case for imminent easing in November. Weaker risk sentiments also weigh on commodity currencies in general, after US stocks reversed initial gains to close sharply lower. Euro and Swiss Franc...

RBA minutes confirm imminent easing, GBP/AUD to break 1.8411 resistance

Minutes of RBA's October meeting indicated that the board was already ready to push forward new easing measures. The announcement was delayed to November, partly for allowing the market to digest the Government's budget, and partly for Governor Philip Lowe to outline the changes first. In short, the minutes noted...

RBA Kent: Interest rates could all go a little lower

RBA Assistant Governor Christopher Kent's comment in a webinar reinforced the case for further monetary easing at November 3 meeting. He noted that monetary easing could gain a bit more traction now as the economy was reopening, echoing previous comments by Governor Philip Low. Interest rates "could all go a...

RBA: Minutes of the October Meeting Confirm Decision to Cut Rates on November 3

The Minutes of the October meeting confirm the profound changes to policy which were outlined by the Governor on October 15. The Minutes of the October Board meeting of the Reserve Bank of Australia confirm the key themes of Governor Lowe’s speech which was delivered on October 15. They indicate that...

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

Videoconference – 6 October 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 Michele Bullock (Assistant Governor, Financial System), Luci Ellis (Assistant Governor, Economic), Christopher Kent (Assistant Governor,...

RBA Minutes Reveal Strong Conviction to Further Easing in November

RBA's minutes for the October meeting offered more supports that further easing will be rolled out soon. Potential measures include rate cuts and asset purchases. The bottom line is that the policy rate will not go negative. Assistant Governor Christopher Kent's speech earlier today signaled strongly the easing bias....

Weekly Economic and Financial Commentary: Rebound Continues, but Initial Claims and Cases Rise

U.S. Review Rebound Continues, but Initial Claims and Cases Rise Data continue to reflect an economy digging itself out of the lockdown-induced slump. Consumer prices and retail sales rose in September as activity continued to pick up, but a rise in initial claims for state unemployment benefits last week points...