* Aussie recovers strongly over the weekend * USD weakness on speculation Fed considering smaller hike in Dec * Boris Johnson rules out challenge for UK Leadership The AUD/USD staged a strong recovery over the weekend opening this morning up almost 1½ cents on Fridays close. As has been the tale over the last 2-3
* Aussie rides the rollercoaster * Local job numbers for September disappoint * UK looking for 3rd PM in the space of 7 weeks The AUD/USD has opened this morning slightly above yesterdays close of 0.6257. However the past 24 hours has seen the Aussie ride the rollercoaster on the Gold Coast trading in a
AUD/USD Last week, AUD/USD came under some downward pressure for three major reasons. First, the USD further increased on expectations the Fed will raise interest rates by another 75bpt at their next meeting to take the Fed funds rate to 3.25% (upper-bound). Second, China extended lockdowns to a broader section of the community, generating fears
AUD/USD The USD lifted to a fresh 20-year cyclical high against a basket of currencies on Wednesday last week. The lift in the USD came in response to comments made by Fed Chair Jerome Powell, at the Jackson Hole Economic Symposium. Powell said the Fed is “moving our policy stance purposefully to a level that
AUD/USD The main highlight last week was the Fed’s Jackson Hole Economic Symposium. The main message to come from the Symposium was from Fed Chair Jerome Powell, who said the Fed will press on with interest rate rises, and will keep interest rate high for an extended period of time if necessary, in order bring
USD and AUD/USD Economic data out of the U.S. this week include the second estimate of U.S. Q2 real GDP. The first estimate of U.S. Q2 GDP fell -0.9% (saar), making it the second consecutive negative quarter of growth (after a -1.6% (saar) in Q1). This placed the U.S. economy in a technical recession, even
AUD/USD The biggest currency event of last week, was the news that U.S. inflation eased in July. Annual CPI inflation eased from 9.1% (YoY) to 8.5% (YoY), with the core measure of inflation remaining at 5.9% (YoY). The currency market reacted by sending the USD lower, giving a lift to all boats, including the AUD,
AUD/USD AUD/USD declined after the RBA raised interest rates 50bpts (as expected) to 1.85% last week. The main reason for this was, the RBA updated their forward guidance to say while they place a “high priority” on the return of inflation to the 2-3% range, they are “not on a pre-set path”. The market interpreted
AUD/USD AUD/USD has lifted over the last week, rising temporarily back above 0.7000 for the first time in some six weeks, driven largely by a softening in the USD. The USD appears to have peaked as U.S. economic growth slows and because there are some early sign’s inflation may have peaked. U.S. economic growth contracted
AUD/USD Australia’s Q2 CPI inflation data is out on Wednesday. Consensus is for a 1.9% (QoQ) rise, and for the annual rate of inflation to lift to 6.2%, from 5.1% in Q1. Australia’s core (trimmed mean) CPI inflation is also expected to rise 1.5% (QoQ) to be 4.7%, up from 3.7% in Q1. The categories