Australian dollar finds support as RBA hikes again

By Wayne Cole

SYDNEY, July 5 (Reuters) - The Australian dollar nudged higher on Tuesday after the country's central bank raised interest rates for a third month in a row and signalled more rate hikes are in the offing, fuelling wagers on another outsized move next month.

The Aussie firmed a touch to $0.6873 AUD=D3 , after bouncing 0.7% overnight on reports the White House was closer to easing tariffs on Chinese goods. Resistance lies at $0.6920 and $0.6960, with support at a recent two-year trough of $0.6764.

The kiwi dollar stood at $0.6212 NZD=D3 , having found some support after hitting a two-year low of $0.6150 last week. Resistance comes in at $0.6253 and $0.6326.

The Reserve Bank of Australia (RBA) ended its July policy meeting by lifting its cash rate 50 basis points (bps) to 1.35%, marking 125 bps of tightening since May.

It reiterated that "further steps" would be needed to bring inflation to heel, leading futures 0#YIB: to narrow the odds on another half-point hike in August. RBAWATCH

Markets imply rates could reach 3.25% by the end of the year, though that is down from 3.75% early in June.

Yields on three-year bonds AU3YT=RR were a shade higher at 3.08%, but still a long way from their June top of 3.767%. Likewise, 10-year yields AU10YT=RR stood at 3.577%, well below the June peak of 4.125%.

"The market discussion is likely to focus on whether the RBA's resolve for a rapid front-loading of hikes is waning, and if so, whether that is a bullish or bearish signal for outright yields," said Damien McColough, head of rates strategy at Westpac.

"We suspect that some near term bullish impetus will not be sustained when we see the next inflation print."

Consumer price data for the second quarter is due later this month and is likely to show headline inflation topping 6% for the first time in two decades.

Core inflation is seen accelerating above 4% and further away from the RBA's target band of 2-3%.

"We now expect inflation to peak at 8% and expect the cash rate to rise to 3.5%," warned Marcel Thieliant, a senior economist at Capital Economics. "But we suspect that lower house prices will result in a plunge in dwellings investment that will bring the economy close to recession next year," he added, tipping rate cuts for late 2023.
Reporting by Wayne Cole; Editing by Edwina Gibbs

免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。


本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。