Reserve Bank of Australia

Fading Hopes of a U.S.-Sino Trade Deal Hammers Share Prices

December 3, 2019

Evidence keeps mounting that a near-term trade deal is slipping away. President Trump denied any deadline and hinted that a phase I agreement will not happen before next year. Angry about the U.S. congress’s resolution of support for Hong Kong protesters and perceived U.S. interference in Chinese domestic affairs on the mainland, Beijing officials reportedly […] More

Higher Bond Yields

November 5, 2019

Ten-year sovereign debt yields advanced by another five basis points overnight in Japan and the United States, by 3 bps in Germany and 1 basis point in Great Britain. The dollar fell 0.4% against the Chinese currency, edging back marginally under 7.0 yuan per dollar. Elsewhere, the dollar advanced 0.4% against the Swiss franc and […] More

Another Australian Interest Rate Cut

October 1, 2019

The dollar overnight advanced 0.7% against the Australian dollar and 0.6% versus the kiwi following news of a third 25-basis point cut since June in the Reserve Bank of Australia’s official cash rate, which now moves to a record low of 0.75%. A statement from that central bank left the door open to even more […] More

Geopolitical Strains, Weak Data, and a Poor Bond Auction as New Quarter Kicks Off

October 1, 2019

As China observes National Day, increasingly violent protests in Hong Kong evoked a Kent State moment as one protester has been shot there. Half a world away, President Trump’s team stepped up its manhunt for the impeachment whistle blower. Britain, too, is convulsed by its own constitutional crisis, ans the Conservative Party prepares for its […] More

Difficult Session for Indian Stocks and the Rupee… Key Vote on Brexit… Florida Watching Dorian Warily

September 3, 2019

The Sensex index of Indian share prices fell 2.1%, its worst daily session of 2019, and the rupee has fallen over 0.5% against the dollar. Investors reacted to a 6-year low in Indian on-year GDP growth and a 15-month low in the economy’s manufacturing purchasing managers index. British MPs in the House of Commons across […] More

Yesterday’s Rebound in Sovereign Debt Yields Trimmed

August 20, 2019

Ten-year sovereign debt yields slipped Tuesday by five basis points in Germany and the United States, three bps in Great Britain and a basis point in Japan. Yields had dropped very sharply earlier in August but staged a rebound yesterday. Without government stimulus, investors fear a continuing global growth slowdown and possibly even a recession. […] More

Dollar Gives Back Part of Monday’s Sharp Gain against the Yuan

August 6, 2019

The yuan yesterday had slumped to 7.0525 per dollar, its weakest level since May 2008. In response, the U.S. Treasury released a protest, labeling Beijing a “currency manipulator.” This is the first such designation since 1994. By law, the Treasury reviews the currency policies of foreign governments every six months. The most recent review was […] More

Stronger Dollar

July 16, 2019

The dollar strengthened overnight by 0.9% against sterling, 0.6% relative to the peso, 0.4% versus the euro and Swiss franc, 0.3% vis-a-vis the yen, 0.2% against the Aussie dollar and 0.1% versus the kiwi. In other euro cross-rate developments, sterling weakened to a half-year low against the common currency, but the Swiss franc is hovering […] More

Reserve Bank of Australia Cuts Interest Rate as Expected to New Record Low of 1.0%

July 2, 2019

The Board of the Reserve Bank of Australia engineered a second consecutive 25-basis point reduction of its Official Cash Rate, which now drops to a record low 1.0%. A released statement asserts a readiness to act further if deemed necessary: “The Board will continue to monitor developments in the labor market closely and adjust monetary […] More

Australian Interest Rate Cut and Greater-than-Forecast Inflation Retreat in the Euro Area

June 4, 2019

The dollar is unchanged against the yen, euro, sterling and yuan. The greenback edged marginally higher overnight against the Aussie dollar and kiwi. In other financial market action earlier today, share prices fell almost 1% in China but closed flat in Japan. The German Dax is up 0.8%, while stocks in the U.K. and France […] More

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