Reserve Bank of Australia

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

A Focus on Geopolitical Risk

May 7, 2019

U.S.-Sino trade talks are entering the final make-or-break stage. The Chinese delegation is coming to America, but the outcome of this final round of negotiations is much in doubt. Meanwhile, Secretary of State Pompeo abruptly canceled a trip to Germany, citing unspecified pressing matters. This mysterious cancelation raises the possibility of a major event risk […] More

Dollar and Sovereign Debt Yields Up, but Equities Mostly Down

March 5, 2019

Overnight gains in the dollar amount to 0.6% versus sterling, 0.5% relative to the kiwi, 0.4% vis-a-vis the loonie, and 0.3% against the euro, Swiss Franc and Australian dollar. Ten-year sovereign debt yields climbed two basis points in Germany and the United States and a basis point in Japan. Stock markets fell 0.7% in Indonesia, […] More

Decision Day in America

November 6, 2018

Market behavior today has been unremarkable, as investors around the world wait to see which vision of America has prevailed. The dollar has dipped 0.1-0.2% against the euro, Swiss franc, yuan, and Canadian, Aussie and New Zealand dollars. there’s been a 0.3% drop against the peso and sterling but a 0.1% uptick relative to the […] More

Intensifying Concern that Euro Area Is Drifting Into a Fresh Debt Crisis over Italy

October 2, 2018

A quote from European Commission President Jean-Claude Junker set the tone for trading today: “I would not wish that, after having really been able to cope with the Greek crisis, we’ll end up in the same crisis in Italy.” Ten-year sovereign debt yields, while dropping today by 3 basis points in France, Germany, The Netherlands, […] More

Reserve Bank of Australia

July 3, 2018

As was expected, Australia’s Official Cash Rate (OCR) was left at the record low of 1.50% that it has been at since a 25-basis point cut in August 2016. A released statement from Governor Lowe exhibits no near-term possible consideration of raising such. Several risk factors and other justifications are mentioned to keep the status […] More

Australian Monetary Policy Stance Still on Hold

June 5, 2018

The Reserve Bank of Australia’s official cash rate was last changed in August 2016 when it was cut 25 basis points to 1.50%. Each ensuing policy review — done once every month except January — has stuck with that status quo, although the direction of the rate’s next change is more likely to be up […] More

Reserve Bank of Australia

May 1, 2018

Notwithstanding a lengthy 21 months since the last change of Australia’s official cash rate — a cut of 25 basis points to 1.5% — members of the RBA Board remain in no hurry to start rate normalization. A post-meeting statement released today concluded that “further progress in reducing unemployment and having inflation return to target […] More

May Day 2018

May 1, 2018

A slew of countries are observing May Day holiday closures to honor workers. These include India, China, Hong Kong South Korea, Taiwan, Indonesia, Singapore, Italy, Spain, Switzerland, Greece, Germany, France, Mexico, Norway, South Africa, and Brazil. The main market-sensitive developments are 1) a batch of weak British data weighing on sterling and 2) U.S. President […] More

Australian Official Cash Rate Left at Record Low 1.5%

April 3, 2018

As recently as two months ago, Reserve Bank of Australia Board members were sticking to the prediction that growth would rebound at least to 3% this year. The February post-meeting statement asserted, “The Bank’s central forecast for the Australian economy is for GDP growth to pick up, to average a bit above 3 per cent over the […] More

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