News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Traders in the Euro have a big decision to make this weekend: if EUR/USD hits 1.20, will it continue to advance, consolidate or fall back? Get your $EURUSD market update from @MartinSEssex here:https://t.co/8hAhguZcEA https://t.co/kwtatozp3z
  • The bullish engulfing candle is one of the forex market's most clear-cut price action signals for reversals and continuation. Learn more about this price action trading signal here: https://t.co/Yg6ecRZZNr https://t.co/9SdceNYUEK
  • The bull flag pattern is a great pattern to add to a forex trader's technical arsenal. Explosive moves are often associated with the bull flag. Learn more about the bull flag pattern here: https://t.co/yOEvLjKnct https://t.co/imv2PnapzH
  • Defensive stocks have proven critically important when navigating stock market volatility. Find out what are the most defensive stocks here:https://t.co/TMcbMALtbw https://t.co/mmldxxEtsc
  • Dollar Index has broken major uptrend support and risks accelerated losses into the December open. Get your $USD technical analysis from @MBForex here:https://t.co/Txo8l8S1f1 https://t.co/YLVzP95JH8
  • The MACD is an indicator that uses exponential moving averages (EMA) to determine trend strength along with entry points based on crossovers. Find out how you can use the MACD as a buy/sell signal here: https://t.co/qxnP99uqTQ https://t.co/tGVqSZ2zK3
  • Support and resistance are the cornerstone of technical analysis, making it the foundation that you build your knowledge on. Build a stronger foundation here: https://t.co/yXLaRpl90I https://t.co/reMoYpqkQO
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/sqeRL7Rf7u
  • Cyclical and non-cyclical stocks can help diversify a trader’s equity portfolio. Get your guide to understanding these stocks here: https://t.co/h7BKTd2J8N https://t.co/ukOW0dWJxf
  • Beautifully put. https://t.co/0fBsmUH6Pb
Australian Dollar Climbs as RBA Rate Cut Bets Fade

Australian Dollar Climbs as RBA Rate Cut Bets Fade

2015-11-03 05:04:00
Daniel Dubrovsky, Analyst
Share:

Talking Points:

  • RBA leaves its cash rate unchanged at 2.00 percent as expected
  • Australian Dollar climbs more than 0.5 percent versus the USD
  • 2-year government bond yields rally signal RBA rate cut bets fade

Follow commentary from top officials as it is released with the real-time news feed

The Australian Dollar climbed more than 0.5 percent against its US counterpart after the Reserve Bank of Australia left its benchmark lending rate unchanged. 12 out of the 29 economists surveyed by Bloomberg predicted that the central bank would cut rates to 1.75 percent from 2.00 percent. The RBA has now left rates unchanged for 6 consecutive meetings.

Looking at the central bank’s monetary policy statement, the RBA judged that leaving the cash rate unchanged was appropriate at this meeting. Prospects for an improvement in economic conditions have firmed. While inflation is expected to be consistent with the target over the next two years, there was a slight revision to the downside. This translates to the outlook of inflation possibly offering the scope for further easing. Nevertheless, the board will continue to assess the outlook and judge whether or not the current stance of policy will be the most appropriate.

The markets are currently expecting the Reserve Bank of Australia to cut rates at least once over the next 12 months. While there were a few additions to today’s rhetoric, November’s monetary policy statement seemed relatively little changed compared to October’s. In the end, Australian 2-year government bond yields rallied more than 2 percent as the Aussie climbed. This likely signals that the markets are becoming less certain of a rate cut from the RBA in the near-term.

On Friday, the United States will release its report for October’s change in non-farm payrolls. Currency Strategist Ilya Spivak noted that an upbeat result is likely to increase the chances of a Fed rate hike in December. This will likely push the US dollar broadly higher against its major counterparts, including the Australian unit.

Australian Dollar Climbs as RBA Rate Cut Bets Fade

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES