Reserve Bank of Australia
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
Dollar Strengthened Modestly Overnight
February 16, 2021
The dollar rose 0.2-0.4% against the euro, yen, Swiss franc, sterling, and Canadian, Australian and New Zealand dollars. Japan’s Nikkei-225 equity index, which jumped 1.9% Monday and closed above 30,000 for the first time since 1990, extended that advance by 1.3% this Tuesday. This rise had been ignited by news of a stronger-than-expected 3.0% fourth-quarter […] More
Reserve Bank of Australia Lays Out a Long Path Before a First Interest Rate Hike
February 2, 2021
After customarily skipping of a January Board meeting, monthly policy reviews resumed in Australia where officials agreed to leave their Official Cash Rate unchanged at a record low of 0.1% where such has been since a 15-basis point in November. The OCR previously in 2020 had been cut twice in March by 25 basis points […] More
A Rise in Equities, Sovereign Debt Yields, and the Dollar as GameStop and Silver Swoon
February 2, 2021
The price of GameStop has imploded about 60% in the past 24 hours, and the other notable short squeeze has fallen back 6.3%. The removal of these unhealthy elements in financial markets has been beneficial overall. The S&P, DOW, and Nasdaq each opened about 1% higher. In the Pacific Rim earlier today, stock markets closed […] More
