Reserve Bank of Australia
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
Central Bank Rate Decisions in Kyrgyzstan and Australia
March 1, 2022
The National Bank of Kyrgyzstan increased its policy rate by 150 basis points to 10.0%, which is exactly double the level prior to February 2021 and at a six-year peak. The previous increase of 50 bps was done in January. A 10% the policy rate still remains a tad below on-year CPI inflation in that […] More
Uneven Manufacturing Trends Around the World
February 1, 2022
The dollar slipped 0.2% overnight on a weighted basis, losing 0.6% against the Swiss franc, 0.4% relative to the yen, Aussie dollar, Mexican peso and sterling, but just 0.2% versus the euro and 0.1% against the loonie. Stock markets in those Pacific Rim countries that were open and in Europe rallied robustly, taking their cue […] More
Dollar and Equity Markets Extend Recoveries
December 7, 2021
Identified Covid cases in America are zeroing in on the 50 million level since the start of the pandemic, including almost 119k cases yesterday. But there has been a sense of relief in the absence so far of evidence that the Omicron Variant will be associated with higher rates of hospitalization or deaths. Investors are […] More
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
