More Evidence Still Needed for Dollar’s Strength and Aussie’s Weakness
Dollar and Yen ended as the strongest ones last week as global stock markets tumble. There were concerns over resurgence in coronavirus infections in Europe, with worries over a return to lockdown. Though, the US markets ended not too badly after Friday's rebound. It's still not clear if the...
Aussie Dollar sinks to a 2 month low
The Australian dollar took a pounding this week as the US dollar made a big comeback, key commodity prices fell and RBA rate cut talk picked up.
Aussie dollar sinks to a 2 month low
Earlier this month the Aussie dollar was rebuffed as it tested 74 cents, a 2 year...
Aussie and Kiwi Down on Easing Expectations, Dollar and Yen Firm
Commodity currencies tumble generally in Asian session today. New Zealand Dollar softens as RBNZ further affirm that it's in progress for more monetary easing, including negative interest rates. Aussie also tumble on increasing expectation of on imminent RBA rate cut in October. On the other hand, while US stocks...
AUD/JPY and AUD/CAD tumble on speculation of Team Australia RBA rate cut
Australian Dollar weakens broadly today, on growing speculation of imminent easing after RBA Deputy Governor Guy Debelle's speech yesterday. Westpac expects the measures to be announced on October 6, the same day as the government delivers budget, as a "Team Australia" move. RBA is expected to cut overnight cash...
RBA To Cut Rates On October 6
In a speech yesterday the Deputy Governor of the Reserve Bank gave a fairly clear hint that the Board is set to cut the cash rate and other key policy rates at its October Board meeting.
The Bank is also likely to extend its objectives for bond purchases to include...
Dollar Awaits Fuel for Committed Rally, Stocks Consolidate Losses
The overall markets are relatively steady today. Dollar attempted for a brief rally in early European session. But it quickly retreated together with mild recovery in stocks. Though, there seems to be no committed buying in the equities market yet, while US futures also point to lower open, risk...
Stocks Lick Wounds, Pound Tumbles On Lockdown Fears
Selloff in equities eases but sentiment still subdued amid virus and political woes
Dollar and yen hold firm as clouds gather over economic recovery
Pound braces for new UK restrictions; aussie skids after RBA's surprise dovish turn
Just a wobble or start of a deeper correction?
The market mood remained...
Markets Stabilized after Selloff, Dollar Rally Still Unconvincing
Asian markets are trading mildly lower today, following the weakness in US overnight. While DOW dropped more than -900 pts during the session, it managed to pare back half of the losses to close down -509.72 pts only. Following that, Dollar and Yen retreated some gains while Gold also...
RBA Debelle outlines four monetary policy options ahead
RBA Deputy Governor Guy Debelle outlined four possible options for monetary policy over the period ahead in a speech. The first option is for buying bonds further out along the curve. RBA has focused on three-year yield as target because, unlike the US, Australian financial instruments price predominantly off...
Cliff Notes: The Antipodes Show Their Strength
Key insights from the week that was.
This week we have received significant economic and policy updates from across the globe. From these, it is evident that Australia and New Zealand are both in a good position to rebound.
Beginning at home in Australia, this week’s August labour force update delivered...
Australia Employment Continues to Power On
August Labour Force Survey. Total employment +111.0k of which full-time was +36.2k and part-time 74.8k. Unemployment fell 0.7ppt to 6.8%.
The shutdown in Victoria did hit that state with employment falling –42.4k and the unemployment rate lifting 0.3pt to 7.1%. Victorian employment is now just 9.5k/0.3% higher than the May...
Aussie Ticks Up Ahead Of Employment Data
Australia's employment data for July will hit the markets at 01:30 GMT on Thursday, following on from the Reserve Bank of Australia's (RBA) meeting minutes on Tuesday. The economy is going through a very difficult period and is experiencing the biggest contraction since 1930. Consequently, the RBA's board has...
Australia Westpac leading index rose to -2.56, consistent with 4% growth in H2
Australia Westpac leading index rose to -2.56 in August, up from -4.42. Westpac said the improvement was broadly consistent with 1.8% growth in Q3, despite an expected -4% in the coronavirus center Victoria. That would also mean a "somewhat" moderated growth pace in Q4 at 2.2%. The combined second...
Yen Surges Broadly, Dollar and Euro Weak
Dollar trades broadly lower today but there seems to be no clear unified theme in the financial markets. Stocks are in risk-on mode, lifting the Australian Dollar. But Yen is also generally higher despite some mild recovery in treasury yields. Sterling's recovery is understandable as it's digesting some of...
Aussie Rallies as Chinese Data Gives Sentiment Additional Boost
Investors seemed to have put last week's selloff in stocks behind already. Asian markets, except Japan, trade generally higher following the rebound in the US overnight. Additional, upside surprises in data from China boost optimism that it's back on track for stronger rebound for the rest of the year....
RBA Minutes – Strong Support for the States
In the Minutes we saw a return to AUD jaw boning along with a clear commitment to supporting the semi’s; no change to the cash rate outlook.
The Minutes of the September meeting of the Reserve Bank Board provided one key insight into the conclusion “It ( the Board) agreed...
AUD Strengthened on Upbeat Chinese Data, RBA Minutes Contained Little News
RBA minutes for the September meeting contained little new information. The members highlighted uncertainty of the economic outlook with lockdowns in Victoria would likely derail Australia’s recovery. Australian dollar is climbing higher at the time of writing this report. However, we believe it is not driven by the minutes...
RBA will continue to consider how further monetary measures could support recovery
In the minutes of September meeting, RBA said the board agreed to "maintain highly accommodative settings as long as required". A surprised addition in the language is that the central bank will "continue to consider how further monetary measures could support the recovery". While it's still early, the minutes...
(RBA) Minutes of the Monetary Policy Meeting of the Reserve Bank Board
Videoconference – 1 September 2020
Members Participating
Philip Lowe (Governor and Chair), Guy Debelle (Deputy Governor), Mark Barnaba AM, Ian Harper AO, Steven Kennedy PSM, Allan Moss AO, Carol Schwartz AO, Catherine Tanna
Members granted leave of absence to Wendy Craik AM in terms of section 18A of the Reserve Bank Act...
AUD/USD Calm ahead of RBA Minutes
AUD/USD showed has started the week with a whimper, as the pair continues to drift. In Monday’s European session, the pair is trading at 0.7275, down 0.13% on the day.
RBA minutes eyed
On Tuesday, investors will be combing through the RBA minutes, which will provide details of the RBA policy...
Cliff Notes: Australian GDP and Cross-Border Flows
Key insights from the week that was.
This week had a singular focus, Q2’s historic fall in Australian GDP.
Coming in at -7%, the decline in activity in Q2 was second to none in the history of the survey. Indeed, Q2’s fall was more than three times the next largest contraction...
Sterling Surges With Euro, Swiss Franc Tumbles, Dollar Mixed
Sterling overtakes Euro as the strongest currency for today, as cross buying against the latter resumes after brief consolidation. However, Swiss Franc is clearly left behind and it's trading as the worst performing one. Rallies in Gold and Silver are a factor pressuring the safe haven Franc. Yen is...
US Futures Broadly Up – Watch ZM, AAPL, QCOM
The S&P 500 Futures are up again after they closed mixed yesterday. Nasdaq 100 hit a fresh record high while the Dow Jones Industrial Average dropped 223 points (-0.8%) and the S&P 500 fell 7 points (+0.2%) to 3500.
Later today, the U.S. Commerce Department will report July construction spending...
Sinking Dollar Lifts All FX Boats
Dollar breaks down across multiple charts, without a clear trigger
Other major currencies climb alongside gold, Nasdaq hits new records
Today: European inflation, US manufacturing, and Fed’s Brainard
Dollar: The pain train rolls on
There is no shortage of volatility in the FX arena. The world’s reserve currency continues to...
Rising Inflation Expectations And Declining Real (US) Yields Push The Dollar To Key Technical Levels
Markets
Global markets ended the quarter in quite a sluggish fashion. Asian and European equities at the open tried to capitalize on some positive factors, including a good lead from WS on Friday and a solid official China manufacturing PMI. However, the attempt faltered during the day. European equities closed...
RBA Delivered a Mildly Dovish Tone as it Extended TFF and Hinted Further Easing
As widely anticipated, RBA left the cash rate and the 3-year bond yield target unchanged at record of 0.25% at today's meeting. Yet, the decision to expand the size of Term Funding Facility (TFF) and the tone in the accompanying statement have suggested a mildly dovish shift to the...
Euro Upside Breakout, Aussie Shrugs RBA
Euro trades broadly higher in Asian session as it finally takes out near term resistance against Dollar and Yen. Swiss Franc is following the common currency closely as second strongest. Gold is also tracking the Euro higher too. Dollar and Yen continue to stay under broad based pressure. The...
RBA kept cash rate at 0.25%, expand and extend term funding facility
RBA left cash rate unchanged at 0.25% as widely expected. The target for 3-year AGS was also kept at 0.25%. On the other hand, it decided to increase the size of the Term Funding Facility to around AUD 200B. Also, the access to facility will also be extended. It...
(RBA) Statement by Philip Lowe, Governor: Monetary Policy Decision
At its meeting today, the Board decided to maintain the targets for the cash rate and the yield on 3-year Australian Government bonds of 25 basis points. It also decided to increase the size of the Term Funding Facility and make the facility available for longer.
Under the expanded Term...
Currency Pair Of The Week: AUD/JPY
The Reserve Bank of Australia (RBA) meets this week at the September Interest Rate Decision meeting. At the meeting in August, the RBA left rates unchanged at 0.25%. However, the Central Bank decided to start buying 3-year bonds, something it hadn’t done since May. At the time, the RBA...