- AUD/USD up a few tics after the RBA cash rate hike and statement suggesting more to come
- RBA raises its cash interest rate by 25bp, as expected
- USD/JPY jumps higher - traders ignoring Japan finance minister Suzuki
- Japan fin min Suzuki says its important for FX to move stably in line with fundamentals
- More from BOJ Gov Kuroda - sees higher real wage growth in the long run
- Goldman Sachs reiterate they think the peak for US core inflation has passed
- New Zealand forecast - "The RBNZ will induce a recession", NZD/USD to 0.55
- Beijing no longer requires negative test for entering supermarkets, commercial buildings
- PBOC sets USD/ CNY central rate at 6.9746 (vs. estimate at 6.9773)
- "BOJ may ditch yield cap next year as inflation perks up-academic"
- BOJ Gov. Kuroda says Japan has not achieved stable 2% inflation accompanied by wage rises
- BOJ Governor Kuroda says its too early to discuss specifics on the Bank's policy framework
- Australian data: Q3 current account misses big time at -2.3bn AUD (expected +6.2bn)
- UK consumer spending data for November - 'greatly lagged' inflation
- Japan data headlines - Japan's real wage posted its biggest fall in more than seven years
- Japan data - October real wages fall the hardest since June of 2015
- Bitcoin dribbling lower - crypto default cited
- The UK Treasury is finalising plans for a package to regulate the cryptocurrency industry
- Australian weekly consumer confidence survey, fell to 82.7 this week
- US corporate lay offs moving beyond tech, media. Pepsi letting go hundreds of HQ workers.
- Goldman Sachs expects the Bank of Canada will hike by 50bp on Wednesday, notes 2 risks
- Trade ideas thread - Tuesday, 6 December 2022
- US stocks close sharply lower. Higher rates hurt investor sentiment.
The final Reserve Bank of Australia policy meeting for the year was the main focus of the session. The RBA delivered an ‘as expected’ cash rate hike of 0.25% that takes it to 3.1%.
The statement from Governor Lowe was strongly suggestive of further rate hikes to come.
The Bank next meets on February 7, there is no January meeting.
The Australian dollar popped a few tics higher after the announcement and the not dovish statement.
Prior to the RBA decision from Australia was Q3 current account data. The current account fell into a deficit of AUD2.3bn in the quarter, down from a surplus of AUD14.7bn in Q2. It is the first current account deficit since Q2 of 2019. Contributors were:
- prices for resource exports fell back
- robust domestic demand pulled in more imports
- The Australian Bureau of Statistics also noted "high operating profits, and increased non-resident investment in resource sector, which led to strong dividend payments to non-resident portfolio investment.”
We get data for Q3 GDP tomorrow (Wednesday, 7 December 2022 at 0030 GMT) from Australia. Net exports will take 0.2% from GDP.
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In the earlier part of the session we had a very small retrace move for the US dollar pretty much across the majors board. The USD had strengthened on Monday, US time, following a strong services PMI result. After the small retrace in the Asian morning we had a pop back up for the USD. USD/JPY traded above 137.00. EUR, GBP, AUD, NZD all fell a touch, but didn’t make fresh lows (compared with Monday US time) like the yen did. A bid for oil helped CAD to remain more or less steady.
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In sad news, Emmy award-winning actor Kirstie Alley passed away. A great entertainer. RIP.
