AUD and the RBA Hawks: Inflation and retail data support further rate hikes
AUD had a brutish 2022, cratering from near 0.76 at the start of April to 0.62 in October. Stronger than expected inflation and retail sales has helped buoy AUD from around 0.67 at the start of last week to within spitting distance of 0.6950 (Monday). Helped by strong South China Sea gusts: China’s pull-out from zero-tolerance Covid lock-down to ‘store open’ is shockingly abrupt. How to separate the stronger OZ domestic data from a Chinese re-open? Around lunchtime AUD was 0.01% higher at 0.6894; DXY was 0.15% higher at 103.11; EUR/USD was 0.02% higher at 1.0734; GBP/USD was 0.25% down at 1.211 though USD/JPY ... (full story)
- Older Stories
China is ready to restart the economic and trade exchanges mechanism with Australia, Commerce Minister Wang Wentao said Monday. During his talks via video link with Australian ...
Investors burned by last month’s malfunction on the New York Stock Exchange can recoup all of their losses, but only if their trades fit certain parameters. The rest may wind up ...
tweet at 8:12pm: Japan FinMin Suzuki: - Believe Last Year's FX Interventions Had Some Impact - Intervened Last Year To Respond To Excessive Volatility - Important for FX to Move Stably Reflecting Economic Fundamentals - Will Continue To Closely Watch Forex Market Moves tweet at 8:12pm: Japan FinMin Suzuki: - Haven't Heard Details About BoJ Nomination - Will Choose Most Appropriate Person At Time For BoJ - MoF Hasn't Approached Amamiya For Bank Of Japan Chief Position tweet at 8:15pm: Japan FinMin Suzuki: - Intervention Size Based On Situation At Time - Can't Comment Further On FX Intervention Strategy
- Newer Stories
At its meeting today, the Board decided to increase the cash rate target by 25 basis points to 3.35 per cent. It also increased the interest rate on Exchange Settlement balances by 25 basis points to 3.25 per cent. Global inflation remains very high. It is, however, moderating in response to lower energy prices, the resolution of supply-chain problems and the tightening of monetary policy. It will be some time, though, before inflation is back to target rates. The outlook for the global economy remains subdued, with below average growth expected this year and next. In Australia, CPI inflation over the year to the December quarter was 7.8 per cent, the highest since 1990. In underlying terms, inflation was 6.9 per cent, which was higher than expected. Global factors explain much of this high inflation, but strong domestic demand is adding to the inflationary pressures in a number of areas of the economy. Inflation is expected to decline this year due to both global factors and slower growth in domestic demand. The central forecast is for CPI inflation to decline to 4¾ per cent this year and to around 3 per cent by mid-2025. Medium-term inflation expectations remain well anchored, and it is important that this remains the case. The Australian economy grew strongly over 2022. The central forecast is little changed from three months ago, with GDP growth expected tweet at 10:31pm: RBA: - Inflation Is Expected to Decline This Year Due to Both Global Factors and Slower Growth in Domestic Demand. - Board Expects Further Increases in Interest Rates - Board Resolute in Its Determination to Return Inflation to Target tweet at 10:31pm: RBA: - The Central Forecast Is for CPI Inflation to Decline to 4¾ per cent This Year and to Around 3 per cent by Mid-2025 - GDP Growth Expected to Slow to Around 1½ per cent Over 2023 and 2024 - Path to Achieving a Soft Landing Remains a Narrow One tweet at 10:32pm: RBA: HOUSEHOLD BALANCE SHEETS ARE ALSO BEING AFFECTED BY THE DECLINE IN HOUSING PRICES #News #Markets #RBA #capitalhungry tweet at 10:34pm: AUD/USD spiking higher as ASX sells off post RBA announcement.
video NZ Prime Minister Chris Hipkins and Australian Prime Minister Anthony Albanese are holding a joint media conference outside Parliament House in Canberra. The two leaders ...