Asia FX Handover - RBA Signals A Cut In June
Matt Simpson May 21, 2019 4:57 AM
A summary of news and snapshot of moves from today’s Asia session.
In a speech today Governor Lowe said the RBA are considering cutting rates at the next June meeting. Wage growth is too slow to be consistent with their inflation target and lower rates would support employment and help lift inflation toward target. Earlier in the session The RBA minutes reiterated a case to cut rates, although it was Lowe’s comments which sent AUD lower.
Earlier, Fed Powell said he only sees 'moderate risks' to financial system from high levels of business borrowing. However, business debt at historic levels should cause businesses and investors to 'pause and reflect'.
GBP and USD are the strongest majors, AUD is broadly weaker, losing the most ground against the Canadian dollar and British pound. Led by China, Asian equities were mostly higher despite a weak lead from Wall Street. Japanese shares are in the red.
APRA announced they’re reviewing the 7.25% ‘loan buffer’ currently required for Australian loan applications, a move which could see lending rise to help support falling housing market.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.