AUD/USD rallies more than 1%, highest since May 2015
The AUD bulls remain unstoppable following the release of hawkish RBA minutes, with the AUD/USD pair now extending the break higher to test 0.79 handle, the strongest levels seen since May 2015.
Aussie bond yields drop
The RBA minutes revealed that the policymakers remain upbeat on the economy, and markets believe that the next policy move could be very well a rate hike. This boosted the Aussie across the board, sending the core pair more than 1 big figure higher through the key upside barrier located at 0.7850 levels, only to proceed its course higher towards 0.79 handle.
The rebound in the Aussie can be also attributed to broad based US dollar weakness, after the Senate Republicans rejected Trump’s Healthcare bill yet again. The USD index slumps -0.38% to trade near fresh 10-month lows of 94.53.
Markets now await fresh fundamental catalysts for further momentum on the pair. In the meantime, the USD dynamics and hawkish RB minutes could continue to underpin the sentiment around the AUD/USD pair.
www.rba.gov.au/monet...2017/2017-07-04.html
RBA Minutes Signal Optimism Toward Second-Quarter Growth
Recent economic data indicate that the June quarter “had been generally positive” amid rebounding consumption growth. However, this segment of the economy remained generally subdued given the record level of household debt bearing down on consumers.
Gross domestic product (GDP) expanded just 0.3% in the March quarter.
Officials voted to keep the overnight rate at a record low of 1.5% following the July 4 meeting. Policy has remained on hold since last August, when rates were cut by 25 basis points.
Analysts are divided about when policymakers might signal for higher rates. Surging house prices and record debt levels suggest Australia is among the most vulnerable nations to rate increases.
However, the latest budget forecast calls for annual growth of 2.75% in fiscal 2017-18. Inflation is also expected to reach 2%. These figures
Last week, the Bank of Canada (BOC) became just the second major central bank in the advanced industrialized world to raise interest rates, but that came after nearly seven years of dovish posturing.
The RBA’s next Board meeting is scheduled for August 1. No shift in policy is expected.
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Aussie bond yields drop
The RBA minutes revealed that the policymakers remain upbeat on the economy, and markets believe that the next policy move could be very well a rate hike. This boosted the Aussie across the board, sending the core pair more than 1 big figure higher through the key upside barrier located at 0.7850 levels, only to proceed its course higher towards 0.79 handle.
The rebound in the Aussie can be also attributed to broad based US dollar weakness, after the Senate Republicans rejected Trump’s Healthcare bill yet again. The USD index slumps -0.38% to trade near fresh 10-month lows of 94.53.
Markets now await fresh fundamental catalysts for further momentum on the pair. In the meantime, the USD dynamics and hawkish RB minutes could continue to underpin the sentiment around the AUD/USD pair.
www.rba.gov.au/monet...2017/2017-07-04.html
RBA Minutes Signal Optimism Toward Second-Quarter Growth
Recent economic data indicate that the June quarter “had been generally positive” amid rebounding consumption growth. However, this segment of the economy remained generally subdued given the record level of household debt bearing down on consumers.
Gross domestic product (GDP) expanded just 0.3% in the March quarter.
Officials voted to keep the overnight rate at a record low of 1.5% following the July 4 meeting. Policy has remained on hold since last August, when rates were cut by 25 basis points.
Analysts are divided about when policymakers might signal for higher rates. Surging house prices and record debt levels suggest Australia is among the most vulnerable nations to rate increases.
However, the latest budget forecast calls for annual growth of 2.75% in fiscal 2017-18. Inflation is also expected to reach 2%. These figures
Last week, the Bank of Canada (BOC) became just the second major central bank in the advanced industrialized world to raise interest rates, but that came after nearly seven years of dovish posturing.
The RBA’s next Board meeting is scheduled for August 1. No shift in policy is expected.
share @fxsreet
