AUD/USD dribbles around key support below 0.6900, China PMI, US PCE inflation eyed

AUD/USD seeks fresh clues as bears flirt with seven-week-old support line. Fears of recession exert downside pressure during inactive session. China’s official PMIs for June will be crucial considering the economic slowdown chatters. Fed’s preferred version of inflation to be eyed closely amid increasing hawkish bets. AUD/USD holds onto the previous day’s bounce off important … Read more

AUD/USD drops towards 0.6900 amid offbeat mood ahead of US/Aussie data

AUD/USD extends the previous day’s pullback from weekly top, stays pressured around intraday low. Market sentiment dwindles amid fears of recession, lack of major catalysts challenge momentum traders. Australia’s business sentiment gauge dropped for the second month, China rejects expectations of heavy stimulus. RBA rate hike expectations ease ahead of Wednesday’s Aussie Retail Sales, US … Read more

S&P cuts Australia’s 2022 GDP forecast to 3.6% from 4% previous

In its latest economic assessment for the Asia-Pacific region, S&P Global offers a dire growth outlook. The global rating agency has cut Australia’s 2022 GDP forecast while revising the RBA’s policy expectations. Key quotes “Growth is easing in the region as export demand softens in line with an expected slowdown among major global expansion.” “However, … Read more

Not expecting a recession in Australia

Reserve Bank of Australia Governor Philip Lowe said on Friday that he does not expect a recession in Australia but acknowledged that there is a narrow path back to low inflation, as reported by Reuters. Earlier in the week, Lowe noted that they will discuss the raising policy rate by either 25 or 50 basis … Read more

Australia Treasury bond yields brace for the biggest weekly fall in a decade

Aussie bond buyers keep reins as traders await RBA’s Lowe. 10-year coupons retreat from the highest in eight years to snap a four-week uptrend. 3-year Treasury yield reverse from late 2011 highs, on the way to posting the biggest weekly loss in 11 years. Aussie data, hawkish RBA fail to underpin bond-buying amid recession fears. … Read more

Inflation likely to get worse before it gets better in 2022

Australian Treasurer Jim Chalmers said on Wednesday that he expects inflation to reach its highest level in 32 years by the end of 2022, calling for more interest rates from the Reserve Bank of Australia (RBA) before Christmas. Key quotes ‘We’ll see that later. Certainly, the expectation across the board is that inflation will get … Read more

Committed to doing what is necessary to ensure inflation returns to target over time

Reserve Bank of Australia (RBA) June monetary policy meeting’s minutes showed that board members remained committed to doing what is necessary to ensure that inflation in Australia returns to the target over time. Additional takeaways Agreed that further steps would need to be taken to normalize monetary conditions in Australia over the months ahead. Inflation … Read more

Expect to discuss 25bp or 50 bp at July meeting as well

“High inflation is cutting into peoples’ real incomes,” said Reserve Bank of Australia (RBA) Governor Philip Lowe during early Tuesday. More to come Also read: AUD/USD bulls approach 0.7000 as RBA’s Lowe teases more rate hikes Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled … Read more

AUD/USD extends recovery towards 0.7000 as RBA praises yield targeting, Lowe eyed

AUD/USD picks up bids to refresh intraday high, extends week-start recovery. RBA praises yield targeting method and mentioned reputational damage as it ended. Market sentiment remains mixed, US holiday allowed European/UK shares to improve. RBA Meeting Minutes, speech from Governor Lowe gain major attention ahead of the full markets. AUD/USD renews intraday high around 0.6960, … Read more