Tag Archives: RBA
Daily Points
KEY POINTS: – Risk markets drifting higher – RBA cuts benchmark rate, cites elevated AUD
RBA cuts rates to 2.75%
The RBA cut the cash rate by 0.25bps to 2.75% at the May meeting. The meeting was “live” but the outcome was uncertain with the market pricing the
RBA likely to hold rates at 3% after Tuesday’s Board meeting
– Despite recent weaker data, the RBA is likely to remain on the bench this week and keep they cash rate steady at 3%. – The RBA also releases the latest quarterly Statement on Monetary Policy (SMP) next Friday.
Australian Markets Weekly
Market looks for a May rate cut – A 25ps cut now priced at better than evens for May
RBA – only a tactical easing bias?
The RBA last week, as expected, maintained its explicit easing bias, noting the “inflation outlook…would afford scope to ease policy further, should that be necessary to support demand”.
FX Market Week Outlook
The dollar hit fresh 14-month lows against the euro on Friday as U.S. jobs data reinforced expectations that the Federal Reserve would maintain its monetary easing program.
Asia Today: No change from the BOJ but USDJPY holds firm
Asia was back on central bank watch during today’s session – one set of minutes and one actual meeting.
RBA Dep Gov talking abt high AUD
RBA Observer Update Speech shows more concerns about high AUD Deputy Governor Philip Lowe gave a speech tonight linking relatively high local rates with the high AUD. This comes after numbers last week showed the RBA accumulated more reserves than usual in the past two months.
FX Daily Strategist: Europe
– Markets hold in well despite plenty of negative catalysts Markets continue to hold in well. The catalysts for risk-off are plenty, including earnings season uncertainty, Japan-China tensions and trade disruption, uncertainty on when Spain requests assistance (and yesterday’s S&P downgrade) and geopolitical tensions surrounding Turkey, Syria and Iran.
Asia Today: USDJPY holds gains despite no BOJ easing (this time)
Asia was in pause mode ahead of tonight’s non-farm payroll report with only the BOJ meeting to monitor. The BOJ left rates unchanged in a unanimous decision, did not announce any new monetary easing steps, but cut its assessment of the Japanese economy.
RBA decided to cut the cash rate to 3.25%
Against our expectations the RBA decided to cut the cash rate by 0.25% to 3.25% already at today’s meeting rather than at the October meeting followed by a new Monetary Policy Report.
FX Daily Strategist: Europe
– Spanish budget well received – risk rally rolls on The long-awaited Spanish budget has been well received by markets with Spanish sovereign spreads relative to Germany narrowing and global equties finishing higher.