Reserve Bank of Australia

Equity Retreat Extended and Dollar Narrowly Mixed

December 6, 2022

Overnight dollar movements include a rise of 0.4% against the loonie coupled with a drop of 0.4% against the Swiss franc; an uptick of 0.2% relative to the yen versus a 0.2% downtick against the euro, dips of 0.1% vis-a-vis the Australian and New Zealand dollars, and no net change against sterling. More significant change […] More

Investors Heartened by Unconfirmed Social Media Reports that Chinese Covid Restrictions Will Be Relaxed Soon

November 1, 2022

Stock markets in the Pacific Rim soared 5.2% in Hong Kong, 2.6% in China, 1.7% in Australia, 1.8% in South Korea, and 1.2% in Singapore. Japan’s Nikkei firmed only 0.3%, by contrast, but equities in German, France, Great Britain, Spain and Italy are all trading 1-2% higher so far today. U.S. future point to a […] More

Australian Rate Hike Smaller than Anticipated

October 4, 2022

Policymakers at the Reserve Bank of Australia helped reinforce markets’ reassessment of coming monetary restraint around the world by throttling back the incremental rise of the Official Cash Rate to 25 basis point from moves of 50 basis points at the previous four monthly reviews. The initial rate hike last May, like today’s had been […] More

Big Market Turnaround: Equity Rebound and Lower Dollar and Sovereign Debt Yields

October 4, 2022

Market expectations of how much further the federal funds target rate will be raised in the coming six months have been scaled back significantly. The catalyst has been evidence of softer U.S. demand, notably visible in yesterday’s ISM-compiled purchasing managers survey of manufacturers, which dropped 1.8 index points to a 28-month low of 50.9. Sub-indices […] More

Fifty Basis Point Central Bank Rate Hike in Australia

September 6, 2022

The Reserve Bank of Australia’s Official Cash Rate, as expected, has underwent its fourth straight monthly half percentage point increase. At a 7.5-year high of 2.35%, the new OCR level compares to 0.10% prior to an initial 25-basis point move in early May. A released statement from RBA Governor Lowe projects a further rise of […] More

Dollar and Share Price Futures Move Higher Together

September 6, 2022

The recent pattern of opposite directional movement in the dollar and U.S. share prices was not experienced today. The weighted DXY dollar index climbed 0.7% to another new 20-year high, with overnight gains of 1.3% against the Japanese yen, 0.6% versus the Australian dollar, and 0.4% relative to the Chinese yuan and Swiss franc. Sterling […] More

August 2, 2022

The Reserve Bank of Australia‘s Officials Cash RateĀ  was raised to 1.85% from 1.35%. This was the third straight monthly hike of half a percentage point. An initial 15-basis point move from the record low of 0.10% was done in May. A released statement predicts a further rise in Australian CPI inflation to 7.75% this […] More

A Chinese Cloud Moves Through Financial Markets

August 2, 2022

The game of chicken between House Speaker Pelosi and Chinese President Xi has generated a new run by investors into safer assets. Pelosi appears determined to not scrap her Asian trip stop in Taiwan, and Xi is warning of unspecified reprisals. In overnight market action, share prices closed down 2.4% in Hong Kong, 2.3% in […] More

Reserve Bank of Australia Commences Interest Rate Up-Cycle

May 3, 2022

The Reserve Bank of Australia today engineered its first interest rate increase of any size since November 2010, raising the Official Cash Rate by a greater-than-expected 25 basis points to 0.35%. Governor Lowe released a statement that asserts officials are “committed to doing what is necessary to ensure that inflation in Australia returns to target […] More

Shortlived Equity Rally, More Inflationary Reports, and Day One of an Historic FOMC Meeting

May 3, 2022

Tech stocks had rallied in the final hour of Monday trading, but futures point to a likely drop of at least 0.5% at the start of Tuesday’s session. Share prices fell 0.9% in New Zealand, 0.6% in Taiwan, 0.4% in Australia, and are down 0.8% in the U.K., whose market had been closed for holiday […] More