AUD/USD jumps as the RBA pivots to rate hikes
Australia’s central bank raised rates for the first time since late 2023 amid strengthening price pressures, sending the Aussie higher.
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Australia’s central bank raised rates for the first time since late 2023 amid strengthening price pressures, sending the Aussie higher.
The pair reached new highs after firm Australian inflation, but erases gains as the greenbacks recovers, with rate decisions by the Fed and the RBA looming.
The pair drops as the Japanese central bank see strong wage growth for next year, bolstering the chances of tightening just a week after the Fed cut rates.
The pair finds support as the contraction of the UK economy bolters the case for a rate cut by the Bank of England, but persistent inflation can keep it in cautious mode.
HKG33 finds support after consumer prices accelerated in November, but deflation fears persist
Oil prices fell over 4% as Israeli airstrikes in Iran avoided oil facilities, calming supply fears. Rising production levels have also added to oversupply pressures on the market.
Copper gets a double boost, since after the Fed’s jumbo cut, its Chinese counterpart announced a series of stimulus measures, including support for the ailing property sector
The Federal Reserve is expected to lower interest rates today, but there’s still debate about how much they’ll cut. Markets are leaning towards a half-point cut, with a 63% chance according to the CME FedWatch Tool. This decision comes at a tricky time, as stocks are near record highs, and a smaller cut could create uncertainty. JPMorgan says a quarter-point cut might dampen investor confidence, while BlackRock believes a larger…
Inflation data is taking centre stage this week as attention shifts from the slowing labour market. Economists expect the producer price index (PPI) for July to rise by 0.2%, similar to June's figures, indicating a modest annual increase. This stability suggests the Federal Reserve might consider cutting rates in September.
Last week saw significant market volatility due to worries over economic growth, yen carry trade issues, and a tech stock selloff. The S&P 500 initially dropped but recovered slightly, ending the week down 0.04% while maintaining a 12.04% gain for the year. Oil prices rose on geopolitical tensions, copper fell due to growth concerns, and gold slipped as traders took profits. Key upcoming data, including July’s CPI and Retail Sales,…
This year the stock market has generally enjoyed a period of stability often described as a "Goldilocks" economy, which has avoided the extremes of overheating or stagnation. However, recent economic data has sparked concerns of a downturn. The July jobs report revealed a modest addition of 114,000 jobs, with the unemployment rate rising to 4.3%, the highest in nearly three years. This, combined with earlier signs of slowing consumer spending…
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