Reserve Bank of Australia Does Not Rule Out Future Hikes

The Reserve Bank of Australia kept rates unchanged at 4.35% as widely expected by analysts, keeping rates at the highest level since May 2012. RBA Governor Bullock sounded as there was in no hurry to cut rates describing rate risks as “fairly balanced” with inflation still “too high” and said, “a further increase in interest rates cannot be ruled out.” The messaging from the RBA was “we are not ruling in anything or out anything” and “need to stay the … Continue reading “Reserve Bank of Australia Does Not Rule Out Future Hikes”

Iron Ore Prices Retrace 12% from Two Year Highs, Dragging Aussie Dollar Down

Iron ore prices have fallen over 12% from a two year high earlier this month over $US145 a tonne to $US127.5 on Tuesday. Prices had risen on expectations of healthy iron ore demand for winter restocking amongst growing optimism that Beijing’s latest round of stimulus to revive China’s troubled property market. China has continued to struggle; shipping has been impacted by the Red Sea attacks as a result commodity prices including iron ore have sold off. Commodity price sensitivity is … Continue reading “Iron Ore Prices Retrace 12% from Two Year Highs, Dragging Aussie Dollar Down”

Iron Ore at Eighteen Month Highs as China Walks a Tightrope Trying to Save Property Market

Iron ore prices climbed to eighteen-month highs on expectations of healthy iron ore demand for winter restocking amongst growing optimism that Beijing’s latest round of stimulus will revive China’s troubled property market. December futures prices for iron ore cargoes with a 63.5% iron ore content for delivery in Tianjin rose to $139 per tonne the highest since June 2022. The benchmark January iron ore on the Singapore Exchange rose 1.4% to $US137.55 a tonne, up 2.7% for the week. The … Continue reading “Iron Ore at Eighteen Month Highs as China Walks a Tightrope Trying to Save Property Market”

Reserve Bank of Australia Leaves Rates Unchanged at 4.35%, Leans Dovish

The Reserve Bank of Australia kept rates unchanged at 4.35% as widely expected by analysts after last month’s 25bps hike which was the RBA’s 13th cash rate hike since they began this hiking cycle in May of 2022. The cash rate at 4.35% is the highest level since May 2012. Of note was the more dovish tone and the nod towards data dependance; “Whether further tightening of monetary policy is required to ensure that inflation returns to target in a … Continue reading “Reserve Bank of Australia Leaves Rates Unchanged at 4.35%, Leans Dovish”

Gold New All Time High Against the U.S. Dollar as Yields Pressure Greenback

Gold, like many assets in the past year has defied traditional valuation. Gold used be known as an inflation hedge, however as yields have fallen as disinflation has featured with CPI and PPI falling globally gold has rallied. This Friday the price of gold hit a record high in US dollars, it has already hit new all times highs in other currencies. For example, it hit a record high in Australian dollars last month. The bet here isa currency bet, … Continue reading “Gold New All Time High Against the U.S. Dollar as Yields Pressure Greenback”

Reserve Bank of Australia Raises Rates to Ten Year High 4.35%, Inflation Pressures Cited

The Reserve Bank of Australia announced a +25bp interest rate hike, as widely expected by analysts after last month’s inflation reports. It is the RBA’s 13th cash rate hike since they began this hiking cycle in May of 2022. The OIS market had been pricing the probability of a rate hike at 50/50. The cash rate at 4.35% is the highest level since May 2012. Prior to this meeting the RBA has left the cash rate unchanged at four consecutive … Continue reading “Reserve Bank of Australia Raises Rates to Ten Year High 4.35%, Inflation Pressures Cited”

RBA Holds Rates at Ten Year High 4.10%, For Fourth Straight Meeting

The Reserve Bank of Australia left rates unchanged at the October meeting in line with the OIS market pricing the probability of no rate hike unanimously. The cash rate at 4.10% is the highest level since May 2012. It is the first time since March-April last year that the RBA has left the cash rate unchanged at four consecutive meetings. Tuesday’s board meeting was also the first chaired by new RBA governor Michele Bullock who began the role on September … Continue reading “RBA Holds Rates at Ten Year High 4.10%, For Fourth Straight Meeting”

RBA Holds Rates at Ten Year High 4.10%, For Third Straight Meeting

The Reserve Bank of Australia left rates unchanged at the September meeting in line with the OIS market pricing the probability of no rate hike unanimously. The cash rate at 4.10% is the highest level since May 2012. It is the first time since March-April last year that the RBA has left the cash rate unchanged at three consecutive meetings. Tuesday’s board meeting was also the last chaired by RBA governor Philip Lowe, whose seven-year term ends next week. Michele … Continue reading “RBA Holds Rates at Ten Year High 4.10%, For Third Straight Meeting”

Forex Traders Weekly Outlook – The Aussie Bounces with Oil, Copper and Iron Ore

The Australian Dollar was the best performer of the week, buoyed by improving sentiment in commodities, iron ore hit a five-week high and oil prices YTD highs with hopes for a Chinese economy rebound. The New Zealand Dollar pulled along with it. The US dollar rally was tested this week and ultimately again benefiting from safe haven and yield chasing flows proved its resilience after rebuffing earlier selling. The Dollar Index bounced off 102.84 to close the week at 104.23. … Continue reading “Forex Traders Weekly Outlook – The Aussie Bounces with Oil, Copper and Iron Ore”

Forex Traders Weekly Outlook – US Dollar and Swiss Franc Attracting Safe Haven Flows

The US dollar rally continued again this week benefiting from safe haven and yield chasing flows. 10-year Treasury yields underpinning yen pairs with carry trade impact. Fed Chair Jerome Powell’s remarks at Jackson Hole renewed commitment to combating inflation prompted traders to elevate their expectations for another rate hike within the year. The yen fell to ¥146.6 per dollar after Jay Powell’s speech at one point. That was the lowest level against the dollar since November on Friday, pressuring the … Continue reading “Forex Traders Weekly Outlook – US Dollar and Swiss Franc Attracting Safe Haven Flows”