Central Banks
Reserve Bank of Australia
Wayne Gordon, Commodity, Rates, and FX Analyst, UBS, says the RBA's continue concern in the latest minutes over high household debt in Australia may be an early signal of policy action on loan-to-value ratios.
Australian Treasurer Scott Morrison says a series of measures undertaken by regulators have put household debt issues under control.
Market watchers expect as many as 125,000 jobs may have been wiped from the September nonfarm payroll due to Hurricanes Harvey and Irma.
The U.S. dollar index rose to seven-week highs on Thursday as data pointed to solid U.S. growth.
The dollar weakened slightly against the euro on Tuesday as investors squared positions after a three week greenback rally.
Asia markets were mixed in afternoon trade as the Reserve Bank of Australia kept its cash rate unchanged.
Australia's central bank left its benchmark cash rate at 1.5 percent on Tuesday in a widely expected decision.
Gareth Aird, senior economist, Commonwealth Bank, says that inflation and growth may be tamer than RBA expectations by the middle of next year, leaving the next rate hike likely in late 2018.
Andrew Ticehurst, executive director, Rate Strategist, Nomura Australia, said the RBA could wait until early 2019 before hiking rates.
Economic fundamentals across the euro zone support the euro, but Australia's uneven housing market is a risk for the Aussie, says Kelvin Tay, MD & Regional CIO, UBS Wealth Management.
Greg Matwejev, portfolio manager, Morris Capital, says the Aussie is likely heading weaker as the U.S. gets set to hike in December and the RBA holds steady at least until sometime next year.
The Reserve Bank of Australia will likely raise interest rates by the first quarter of 2018, says Tony Morriss of BAML.
Paul Bloxham, chief economist Australia, New Zealand and Global Commodities, HSBC, says a tightening labor market and higher growth could lead the RBA to hike rates in early 2018.
The year may be nearing its last lap, but Nomura isn’t done with currency trades, setting six to run through the end of 2017.
Keep an eye on inventories for third quarter GDP as their decline in the second quarter had a noticeable impact, says Steven Milch, chief economist, Suncorp.
Australia has not suffered a classic recession, two straight negative quarters, in GDP since 1991.
Australia's central bank left its cash rate at 1.5 percent on Tuesday, a widely expected decision given policy makers have signaled a steady outlook.
The Reserve Bank of Australia will likely keep a neutral tone late into next year, but behind the scenes is comfortable with the track of the economy, says Gareth Aird, senior economist, Commonwealth Bank.
The Australian dollar has room to fall, but it will likely take the central bank to keep jawboning it lower, says Wayne Gordon, commodity, rates and FX analyst, UBS.
The Reserve Bank of Australia will hold steady in its September meeting, but the direction of the next move is still fluid, says Mark Bayley, head of credit strategy and research, FIIG Securities.
