- The RBA holds interest rates unchanged for seventh straight meeting
- Bets of RBA rate cuts recede
The Australian dollar rallied in Asian trade to 2024 highs against the US dollar, extending gains for the second day after a bullish stance from the Reserve Bank of Australia.
The RBA held interest rates unchanged for the seventh meeting in a row, and cautioned there remains reasons for vigilance against inflation risks.
The Price
The AUD/USD pair rose 0.4% today to 0.6865, the highest since December 2023, with a session-low at 0.6826.
Aussie rose 0.45% on Monday against the greenback, marking the fifth profit in six sessions as the risk appetite improved, and China prepared massive new stimulus measures to boost the economy.
The RBA
As expected, the Reserve Bank of Australia maintained interest rates unchanged at 4.35%, already the highest since November 2011.
The RBA said it’s important that monetary policies remain constrictive to ensure that inflation is sustainably heading towards the 2-3 target.
It added that inflation remains above targets, and the central bank will remain cautious and vigilant for risks.
Australian Rates
Most analysts now don’t expect the Reserve Bank of Australia to start cutting interest rates until 2025.
Most cryptocurrencies rose on Monday as the risk appetite rebounded following the Federal Reserve’s policy decision.
The Federal Reserve announced a 0.5% interest rate cut last week, while many analysts expected a 0.25% cut.
The Fed has thus turned finally into policy easing after two years of aggressive policy tightening to control inflation.
Earlier US data showed the combined PMI index at 54.4 in September, down slightly from August’s 54.6.
The US manufacturing PMI slipped to 47 in September from August’s 47.9, marking a 15-month low.
The US services PMI declined to 55.4 in September from August’s 55.7.
Ethereum
On trading, ethereum rose 4% as of 20:40 GMT on Coinmarketcap to $2674.5.
Gold prices inched higher on Monday as the dollar was little changed as well against most major rivals.
The Federal Reserve announced last week a 0.5% interest rate cut, while many analysts expected a 0.25% cut.
The Fed has thus turned finally into policy easing after two years of aggressive policy tightening to control inflation.
Earlier US data showed the combined PMI index at 54.4 in September, down slightly from August’s 54.6.
The US manufacturing PMI slipped to 47 in September from August’s 47.9, marking a 15-month low.
The US services PMI declined to 55.4 in September from August’s 55.7.
Otherwise, the dollar index rose 0.1% as of 18:45 GMT to 100.8, with a session-high at 101.2, and a low at 100.7.
On trading, gold spot prices rose 0.2% as of 18:45 GMT to $2652 an ounce, after marking a 1.4% profit last week.
- Grim industrial data in Europe, Britain, and the US
- Concerns persist about Chinese demand
International benchmark Brent fell in American trade on Monday and extended the losses for a second session away from two-week highs amid active profit-taking, and with mounting concerns about global demand.
The decline came after a spate of grim industrial data from Europe, Britain, and the US for September, which indicate the world’s economy is likely heading for a contraction.
The Price
Brent fell 0.6% today to $74.22 a barrel, with a session-high at $75.13.
Brent closed Friday down 0.3% away from a two-week high at $75.14.
Global oil prices rallied 3.25% last week, marking the second weekly profit in a row after an aggressive drop in US interest rates.
Grim Data
Both industrial and services data across Europe were dismal, with similarly disappointing results from Britain and the US.
A stream of weak data from China dampened the sentiment as well, with many analysts now expecting growth to continue its slowdown for an extended duration, which could impact fuel demand.
China’s refinery output declined in August for the fifth month in a row due to weak demand and exports, adding to the concerns.
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