RBA rate at 4.85% in sight; economists disagree on further tightening
The RBA is expected to raise its cash rate to 4.85% on Tuesday. The tone of the statement, not the hike, will determine the Australian dollar's moves.
The RBA is expected to raise its cash rate to 4.85% on Tuesday. The tone of the statement, not the hike, will determine the Australian dollar's moves.
JPMorgan predicts RBA rate increase at November meeting, says central bank will keep hawkish stance.
RBA hawkishness and an unexpected RBNZ hold lifted AUD/NZD; the Kospi surged 6% on SK Hynix results. Brent neared $115.
Australia's trimmed mean CPI rose to 3.7% year on year in Q3, beating forecasts, strengthening the case for an RBA rate hike on November 2-3.
Australia's September trimmed mean annual inflation was 3.7%, above the 3.6% expected, while Q3 CPI y/y held at 3.9%.
Australia's September CPI readings arrive today; banks see the RBA-watched quarterly trimmed mean at 1.0% on the quarter, above the RBA's 0.8% forecast pace.
MUFG expects the RBNZ to raise rates to 3% but sees only one more hike, while markets price more. The bank warns of downside for NZD.
Asian equities rose after a Nasdaq-led US session. South Korea GDP beat forecasts, Japan services PPI climbed, and the Australian and New Zealand dollars…
Australian employment fell 39,300 in September and unemployment held at a five-year high of 4.7%, prompting traders to trim their RBA hike bets.
RBA board voted for 25 bps rate rise to 4.60% in September, citing materialised inflation risks and higher neutral rate. Further increases remain on the table.
AUD rallies against USD while other majors fall, with support near 0.69056-0.69205.
Sydney public holiday thins AUD liquidity on Monday; ASX open, data calendar light.
Australia's August CPI is due one day after the RBA's 25bp rate rise, with headline inflation forecast at 4.0% and trimmed mean steady at 3.6%.
China's Mid-Autumn and National Day holidays thin Asian markets, heightening volatility risks.
Almost all economists expect the RBA to raise rates to 4.60% on Tuesday, the highest since 2011.