Results for 'RBA'
49 articles with this tag name
Updated May 16, 2013 4:10:00 PM
AUDCAD has continued to descend after breaking below the key 1.0300/25 level of support highlighted on May 6th. This Aussie weakness has continued over the past 24-hours as AUDUSD broke below the 0.9860/90 support zone highlighted yesterday: 23.6% retracement, 200-week sma and triangle support. Currently, AUDCAD is testing parity, with the 200-week sma just below around 0.9995. Considering AUDUSD broke below its respective 200-week sma overnight, it would not come as a major surprise
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Updated May 14, 2013 12:34:08 AM
Over the last decade or so Australia’s 10 year bond yield has generally moved in sync with the Australian dollar. However, since early 2011 a global flight to quality yields has seen this relationship deteriorate, with yields falling and the Aussie remaining relatively strong. In other words, AUD has failed to respond heavily to the RBA’s recent easing cycle because of the allure of Australian bonds to offshore investors. With relatively high yields backed by
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Updated May 9, 2013 12:26:07 AM
The Australian dollar erased all of its earlier losses from the RBA’s surprise decision to cut interest rates, after a better than expected Australian employment report cast doubt over the need for looser monetary policy. AUDUSD rocketed through a resistance level around 1.0210 on the back of the employment data, after sinking to a support zone around 1.0160 following the release of stronger than expected Chinese inflation figures (inflation increased 2.4% y/y in April, modestly
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Updated May 8, 2013 10:05:05 PM
RBNZ intervention, RBA policy, Chinese data and employment figures out of Australia and NZ played havoc with AUDNZD over the last week. Weighing on the pair, is the possibility of further interest rate cuts in Australia, better than expected employment data out of NZ and inflation concerns in China. On the other side of the equation, extremely strong Australian labour data for April removed some of the impetus for the RBA to cut rates in
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Updated May 8, 2013 6:43:59 PM
Earlier this week the RBA cut Australia’s official cash rate to an all-time low of 2.75%, which along with positive leads from overseas markets’ sent the ASX 200 to its highest level since June 2008. But can the equity binge in Australia continue? Australia’s unemployment rate has been steadily trending higher as local equities have been rallying, at the same time as Australia’s stubbornly high Aussie dollar has been hurting trade exposed sectors of the
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Updated May 7, 2013 9:00:00 AM
The RBA is the latest central bank to cut interest rates following the ECB’s decision last week. The Australian central bank cut rates by 25 basis points to 2.75% - an all time low – earlier attributing the cut to the inflation rate likely to be “a little lower than expected” in the coming months. Weaker inflation pressures gave the RBA scope to cut rates, however the strong exchange rate may have also played a
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Updated May 7, 2013 1:28:31 AM
The Australian dollar took a hit after the RBA cut the official cash rate to a record low of 2.75%, from 3.0%, but a further sell-off was avoided because of the RBA’s somewhat lacklustre statement. The bank stated that it cut rates in order to encourage sustainable growth in the economy, consistent with meeting its inflation target. Also, the RBA acknowledged that the effects of prior rate cuts are still finding their way into the
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Updated May 6, 2013 3:20:00 PM
The USD drifted higher and the Canadian dollar is outperforming in a relatively quiet trading session. The UK was on holiday and the only economic data releases out of North America came from Canada. March building permits jumped by more than expected to 8.6% (cons. 1.0%) and the Ivey PMI fell to 52.2 in April from 61.6 in the prior month. Markets focused more on the Canadian housing data as this has been an area
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Updated May 6, 2013 2:01:35 AM
The highlight of the session was economic data out of Australia resulting in a small sell-off in the Aussie ahead of tomorrow’s RBA meeting. Retail sales and job advertisements data disappointed the market and added to concerns that the impact of the RBA’s prior rate cuts is starting to wear-off. Retail sales fell 0.4% m/m in March, significantly less than an expected 0.1% rise. In April, job advertisements decreased by 1.3%, after also falling in
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Updated May 6, 2013 1:23:59 AM
The outcome of the Reserve Bank of Australia’s (RBA) much anticipated policy meeting on Tuesday is going to come down to whether the bank sees scope to stimulate demand given recent weakness in parts of the economy or whether the board needs further guidance on the economic health of the economy. If the bank favours the former scenario then we expect it cut the official cash rate (OFC) to 2.75% from 3.00%, which would be
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