Australian inflation (CPI) rose 2.8% year-on-year in July, the fastest pace since July 2024. The housing cost component jumped 3.6% year-on-year, highlighting price pressures from rents and utilities. This figure was slightly above market expectations, signaling that the disinflation process is underway, but not yet complete.
In the bond market, Australian 3-year bond futures fell (yields rose) shortly after the hotter-than-expected CPI release. However, this reaction is expected to be temporary. The global picture still points to the Federal Reserve moving toward interest rate cuts, a key driver of short-term interest rates in the G10 (excluding Japan).
Against this backdrop, buying interest in short-term Australian bonds is likely to resurface as investors seek relatively attractive yields amid the prospect of global easing. This means that the spike in yields following the data could subside as market participants adjust their positions.
On the foreign exchange side, the AUD has the potential to maintain its purchasing power. Global conditions tending to favor a weakening US dollar, coupled with today's strengthening yuan, provide support for the Aussie. Going forward, the direction of the AUD and the Australian yield curve will be heavily influenced by the Fed's signals and subsequent global data. (ayu)
Source: Newsmaker.id
U.S. Treasury Secretary Scott Bessent said on Friday he expects to meet next week with Chinese Vice Premier He Lifeng in Malaysia to try to forestall an escalation of U.S. tariffs on Chinese goods tha...
China on Thursday accused the U.S. of stoking panic over its rare earth controls and said Treasury Secretary Scott Bessent had made "grossly distorted" remarks about a top Chinese trade negotiator, re...
Australia's unemployment rate jumped to 4.5% in September, its highest level since 2021. This figure was worse than expected and indicates that the labor market is starting to weaken. Data from the Au...
U.S. President Donald Trump remains on track to meet Chinese leader Xi Jinping in South Korea in late October, U.S. Treasury Secretary Scott Bessent said, as both sides looked to ease tensions followi...
US President Donald Trump hit markets with a fresh tariff threat on Friday, continuing his lashout at China over their decision to impose even stricter export licensing requirements on foreign entitie...
The Federal Reserve will go into a policy meeting next week with its view of the economy obscured by a U.S. government shutdown that has suspended the release of key data, a less-than-ideal situation for policymakers divided over which risks...
Gold prices rose slightly on Monday (October 20th) after rallying to a record high, supported by expectations of further US interest rate cuts and increased demand for safe-haven assets amid the government shutdown in Washington. Investors are now...
Oil prices dipped on Monday, pressured by worries over a global glut as U.S.-China trade tensions added to concerns about an economic slowdown and weaker energy demand. Brent crude futures were down 18 cents, or 0.3%, at $61.11 a barrel as of 0938...
The three major US stock indexes fluctuated between small gains and losses on Friday in what could be another volatile session. Consumer staples and...
US stocks rose on Friday (October 17th) as investors reacted positively to President Trump's remarks alleviating concerns about further trade...
European stock markets pared losses on Friday, with the STOXX 50 and STOXX 600 closing down 0.8% and 0.9%, respectively, after plummeting as much as...
Asia-Pacific stock markets opened higher on Monday (October 20th), as investors awaited the release of key economic data from China. Analysts expect...