Australian dollar may reverse trend

5 July, 2017

Australian dollar may reverse trend

The Australian dollar has taken a tumble in today’s trading session after a less than enthusiastic speech from the RBA had investors predicting that an interest rate hike was now off the table.

The currency dived around 1 percent after comments from Reserve Bank of Australia governor Philip Lowe on the state of the Australian economy and the central banks outlook.

They noted that the Australian economy is expected to strengthen gradually over time, but inflation remains weak on the back of slow wage growth and an ever-growing number in household debt.

"I think those people in the market who are hoping or looking for the Reserve Bank to be a little more hawkish will probably be disappointed, and that's why we've seen the Aussie dollar come off," noted Gareth Aird, senior economist at Commonwealth Bank of Australia

"The central banks that have gone to a slightly more hawkish stance more recently, they're all at a different place than what the Reserve Bank is," he added.

After last week’s bullish speeches from Bank of England Mark Carney and ECB President Mario Draghi the market was expecting the same from the RBA on the back of improving employment figures and overall business confidence.

This may be now the start of a reversal in trend for the Australian dollar as some had been expecting a rate hike in the not too different future, but with the RBA still concerned about inflation this option might be off the table for the time being.


Source link  
Oil to remain flat

The oil price is set to remain stagnant over the next few years according to some analysts with the outside possibility that the price could tumble if Opec members fail to cooperate...

Mini gold rally won't last

After hitting a low of $1,260 3 days ago, the gold price has rallied nearly $30 to be trading around $1,289 today and some are predicting...

Gold may struggle to rebound

The gold price is under further pressure today as investors exit the safe haven commodity in favour of the US dollar after yesterday’s positive...


Euro looks technically vulnerable

The Euro has come under pressure in recent days and now it seems its becoming technically vulnerable on the back of a head and shoulders...

Pound looks to $1.3500

British pound continues to surge today against its US counterpart, following on from yesterday’s gains on the back of booming inflation...

Gold may go much higher

Gold is powering ahead following on from gains of more than $20 yesterday after a missile test from North Korea greatly increased the chances...


Pound may be at a bottom

British pound has drifted lower midway through the European session, brushing off better than expected retail sales figures but some predict...

Possible conflict boosts gold

The gold price is on the rise today after comments by US president Donald `Trump about North Korea which increased the chances of a military conflict...

Pound may be sold off

The British Pound is trading higher for a 6th straight session today as the market awaits the latest interest rate decision from the Bank of England followed by a monitory press conference....

  


Share: