ANZ update their projections for the rba Reserve Bank of Australia
RBA seems to be in a hurry to get the cash rate lower
we have brought forward the expected rate cuts to July and August
After August, we think the RBA will pause for a period
combination of lower interest rates
The Japanese stock market is rising on Thursday following the modest gains overnight on Wall Street amid indications the U.S. Federal Reserve plans to cut interest rates sometime in the future. Investors now look ahead to the Bank of Japan's monetary policy decision due later in the day.
Surprisingly dovish comments from ECB President Mario Draghi sent Euro sharply lower, and German 10-year yield to new record low today. There are some speculations that ECB could eventually cut interest rates, with a tiered system”, alongside released of new economic projections in July. The comment
Gold is retesting the year's highs again today
With Draghi committing to dovish remarks earlier today, it continues to underscore the ongoing theme of global central banks growing increasingly dovish this year. And that is no doubt something that will allow gold to charm investors even more as the
The Fed could make a number of changes in the June meeting, to pave way for a rate cut in as soon as July. We would focus on three things: the updated economic projections, adjustment in the forward guidance and median dot plot. It is likely that the Fed would leave the policy rate unchanged at 2.25
Dollar remains generally firm in quiet Asian markets today. The greenback continues to be supported by expectation that FOMC won’t deliver any “insurance” rate cut this week. Instead, Fed policy makers will look at the upcoming developments before making a decision, in particular the result of G20 s
The forex markets are rather mixed today. Dollar suffered very brief selling after CPI miss. But the greenback quickly regains footing as the readings are not bad enough to push Fed for a cut. For now, Sterling is the strongest one for today, followed by Yen and then Dollar. Swiss Franc is the weake
Here is the data on the jobs report: Australia (May) Employment Change: +42.3K (expected +16K) & Unemployment 5.2% (expected 5.1%)
I'm going with the 'key takeaway' being the jump in unemployment. This supports those looking for further RBA rate cuts.
AUD a touch lower, though not much: