Reserve Bank of Australia

Tuesday Surprises

November 2, 2021

West Virginia Senator Manchin flip-flopped again. After days of indicating progress on the twin fiscal packages addressing dated infrastructure and a host of other major issues such as climate change and child care, he said he would not support this two-front approach, which throws President Biden’s agenda into peril. The Reserve Bank of Australia discontinued […] More

Inflation Surprises Persisting, Central Banks Reacting, and Investors Fretting about What Lies Just Ahead

October 6, 2021

Against the backdrop of  central banks reacting to higher-than-forecast inflation, the dollar continues to be a well-bid currency. The weighted DXY dollar index came within a 0.05-point whisker overnight of matching its 52-week high set last November. The U.S. currency also rose 1.1% against the kiwi and Mexican peso, 0.7% versus the euro and Aussie […] More

A Respite from Monday’s Difficult Day

October 5, 2021

Following a technology-led rout, U.S. equities are currently up around 1.25%, and the German, French, Italian and British bourses show rises of 0.6-1.0%. This rebound was not reflected in Asia, where share prices closed down 1.9% in South Korea, 1.3% in Japan, 0.9% in Indonesia, and 0.7% in Singapore. New Zealand and Australia markets dropped […] More

Higher Long-Term Interest Rates Lifts Dollar and Depresses Stocks and Commodities

September 7, 2021

10-year sovereign debt yields are five basis  points higher in the United States and Great Britain and up four basis points in Germany. The 10-year Japanese JGB yield, by contrast, is unchanged. The dollar rose 0.4% overnight against the DXY weighted index. The yen (up 0.3%) has outpaced the 0.1% upticks in the euro and […] More

Lacking Much Direction

August 3, 2021

The dollar drifted lower overnight, losing 0.4% against the peso and kiwi, 0.2% versus the Swiss franc, yen, Aussie dollar and sterling, and 0.1% relative to the euro and weighted DXY index. The dollar is unchanged against the yuan and 0.6% firmer against the Turkish lira. At an intra-day low of 1.15% and 1.17% currently, […] More

Reserve Bank of Australia

July 6, 2021

The Reserve Bank of Australia from November will reduced weekly bond purchases from A$ 5 billion currently to A$ 4 billion, and said in a released statement following today’s policy review that “the central scenario remains that the condition for a lift in the cash rate will not be met until 2024.” Forward guidance in […] More

Mixed Data Signals and Another Central Bank Shifts its Stance Ever So Slightly

July 6, 2021

The dollar slid 0.1% against its DXY weighted index overnight, with drops of 0.9% against the kiwi, 0.6% versus the Australian dollar, 0.3% relative to the yen, and 0.2% vis-a-vis the Mexican peso. The dollar also firmed 0.2% against the euro and loonie and 0.1% against the Swiss franc. The Turkish lira, Chinese yuan and […] More

Reserve Bank of Australia Maintaining Monetary Accommodation

June 1, 2021

Board members at the Reserve Bank of Australia left the Official Cash Rate at a record low of 0.10%, its level since a 15-basis point cut six months ago. This was the expected decision and was made in spite of a red-hot property market. A released statement from Governor Lowe reaffirms the commitment to keeping […] More

Lots of Other Data to Digest While Waiting for U.S. April Jobs Report

May 7, 2021

The dollar, down a mere 0.1% overnight, and the 10-year Treasury yield — unchanged at 1.57% — have been  marking time ahead of the U.S. Labor Department’s monthly jobs report, which is expected to reveal a 0.1-0.2 percentage point drop in unemployment, another large jump in employment of close to 900k, but tepid wage pressure. […] More

Reserve Bank of Australia Keeps Existing Monetary Policy Unchanged

April 6, 2021

Australia’s Official Cash Rate had been cut three times last year, twice in March by a total of 75 basis points and most recently by a further 15 bps in November to a record low of 0.10%. That level was retained at today’s monthly policy review by the Reserve Bank of Australia Board. So were […] More

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