The Australian dollar dropped 1 per cent below US64¢ as the markets moved to price in a peak cash rate and after another round of weak Chinese data.
The Australian dollar dropped sharply after another run of disappointing Chinese economic data and as bonds traders ramped up expectations that the Reserve Bank may be done raising interest rates.pulling closer to a nine-month low of US63.63¢ that was touched in August after a Chinese private-sector survey showed services activity expanded at the slowest pace in eight months in August.
“There was not much surprise in the decision or the statement given the weaker data we have had recently,” said Angus Coote, co-founder of Jamieson Coote Bonds. Economists are less convinced that the tightening cycle is over. Around two-thirds of analysts polled by Reuters forecast the cash rate would climb to 4.35 per cent by the end of the year, on fears of sticky inflation and accelerating wages growth.The RBA is aiming for a soft economic landing to protect gains made in the job market in past years. Governor Lowe acknowledged the path to a soft landing is “narrow”.
Data on Tuesday showed Australian exports added 0.8 percentage points to GDP in Q2, and government spending jumped 1.8 per cent, both well above economists’ forecasts. The result is likely to have reduced the risk of a negative GDP print with CBA upwardly revising its forecast to 0.5 per cent quarter-on-quarter, from 0.3 per cent before the data.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Sri Lankan Australian epic famila saga to return to Australian stage following hit UK tourThe award-winning 19-person show Counting and Cracking is headlining Sydney's Belvoir next year alongside international juggernauts The Curious Incident of the Dog in the Night-Time and August: Osage County.
Read more »
RBA governor may lead both the bank’s new boardsThe RBA and Treasury are considering installing the bank’s governor as chairman of both the monetary policy board and a new governance board.
Read more »
ASX to rise as RBA decision, Lowe’s farewell top this week’s agendaAustralian shares are set to open higher, bolstered by gains in oil and iron ore. US markets will be closed for Labor Day.
Read more »
RBA keeping rates on hold is a ‘universal view’Judo Bank Chief Economic Advisor Warren Hogan says the prediction that the Reserve Bank will keep rates on hold this month is a “universal view”. “The data since their last meeting has all been very friendly – good news on the inflation front,” Mr Hogan told Sky News Business Reporter Edward Boyd. “No one is expecting a move.”
Read more »
ASX to open lower, RBA expected to hold rates steadyAustralian shares are set to fall with Philip Lowe poised to host his final board meeting as governor. Wall Street closed. Bitcoin steady.
Read more »
ASX set to open lower on RBA day; Wall Street closedEuropean shares ceded earlier gains in low-volume trading with Wall Street closed for a public holiday.
Read more »