Archive for May 6th, 2013

Central Bank Watch

Reserve Bank of Australia’s Cash Rate Sliced by 25 Basis Points

May 6, 2013

Australian monetary officials implemented a seventh interest rate cut in a year and a half but the first since December 2012.  The new Official Cash Rate (OCR) becomes 2.75% versus a pre-November 2011 peak of 4.75%.  Officials released a statement that justifies the latest easing by citing weak credit demand, expectations of in-target inflation for […] More

Deeper Analysis

An Eroded U.S. Economic Advantage Versus the Ezone

May 6, 2013

The service-sector U.S. minus Ezone purchasing managers differential contracted 1.9 points to +6.1 in April, as the U.S. reading dropped by 1.3 points while its Euroland counterpart improved 0.6 points.  The manufacturing PMI had dropped by 0.5 points. The 10.1-point sum of those two differentials was 4.3points lower in April than its width just two […] More

New Overnight Developments Abroad - Daily Update

Weaker Aussie Dollar on Rate Cut Speculation

May 6, 2013

The U.S. currency has climbed 0.7% against the Aussie dollar but is otherwise fairly stable relative to Friday closing levels. Australian retail sales fell 0.4% in March.  It was the first decline since December. Australian job ads dropped 1.3% in April, more than twice as fast as the 0.5% decrease in March. The MI-TD gauge […] More