AUD/USD dips on inflation concerns, RBA keeps rates on hold - canadacoundtowned
AUD/USD snapped a three-day blotch of gains on Tuesday as investors were concerned about inflation, rising vegetable oil prices and a possible economic slowdown in Nationalist China, while Reserve Bank of Australia continuing with its plan to maintain its bond-purchasing program at a pace of AUD 4 cardinal per week until at least middle-February 2022.
Concurrently, the RBA official cash rank was unbroken intact at a record low level of 0.10% during the bank's insurance policy meeting earlier on Tues, in line with market expectations.
RBA policy makers said that the timing and tread of Australia's system rebound was uncertain and IT would depend much connected the relaxation of restrictive measures.
"In our central scenario, the economy will be growing over again in the December quarter and is foretold to exist back around its pre-Delta path in the irregular half of next class," the primal bank said in a policy statement.
"The RBA nowadays stuck to its guns by predicting that rates won't rise until 2024, but our sentiment that splashines will remain high for longer means it will happen in early-2023," Marcel Thieliant, Capital Economic science senior Australia & Inexperient Zealand Economist, was quoted as saying by Reuters.
On the macroeconomic front, data showed earlier today that Australia's trade unneeded had expanded to a new record senior high of AUD 15.08 billion in August, as a soar upwards in liquefied natural gas and coal exports more than offset a degenerate in iron ore prices.
Lag, oil prices registered fresh multi-year highs on Tuesday arsenic Organization of Petroleum-Exporting Countries+ members reiterated the mathematical group would preserve with its current product policy amid a rebound in petroleum demand.
As of 8:54 GMT on Tues AUD/USD was inching down 0.07% to trade at 0.7278, spell soul-stirring inside a daily tramp of 0.7249-0.7294. Yesterday the Forex pair went up American Samoa high as 0.7304, which has been its strongest rase since September 28th (0.7311). The major currency pair has gained 0.72% and so far in October, tailing a 1.19% loss in September.
Bond Yield Spread
The spread between 2-year Continent and 2-year US adhesiveness yields, which reflects the flow of funds in a short term, equaled -20.46 basis points (-0.2046%) as of 8:15 GMT on Tuesday, up from -22.0 basis points on October 4th.
Daily Pivot Levels (traditional method of computation)
Center Pin – 0.7280
R1 – 0.7308
R2 – 0.7332
R3 – 0.7361
R4 – 0.7389
S1 – 0.7255
S2 – 0.7227
S3 – 0.7202
S4 – 0.7178
Generator: Miroslav Marinoff, a news editor at TradingPedia, is engaged with observing and reporting on the tendencies in the Outside Exchange Market and the US Securities market.
Source: https://www.tradingpedia.com/2021/10/05/forex-market-aud-usd-snaps-a-three-day-winning-streak-on-inflation-concerns-rba-keeps-rates-on-hold-and-maintains-bond-purchases/
Posted by: canadacoundtowned.blogspot.com
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