The RBA hiked as expected yesterday, but the Aussie dollar fell overnight. Some in the market saw the RBA’s comments about future hikes as dovish.
In our bonus deep-dive interview, ANZ Senior Commodities Strategist Daniel Hynes explains why central bank buying of gold has nearly doubled.
5 things to know
The RBA hiked 25 bps to 4.35% as expected. ANZ Australia Senior Economist Adelaide Timbrell says just the one hike is most likely, but the risks are skewed toward another one.
The A$ fell as low as 64.04 USc overnight vs 65.02 early yesterday and is around 64.24 at 5am AEST. The NZ$ fell to 59.30 USc from 59.72. The RBA said last month “some further tightening may be required”, but this month said “whether further tightening was required,” which some saw as dovish.
China’s exports fell by a more-than-expected 6.4% in October vs a year ago, while imports rose by a more-than-expected 3%. ANZ Asia Economist Betty Wang says the firm imports suggest domestic demand has bottomed out.
ANZ Senior Commodities strategist Daniel Hynes is pointing to a fall in China’s steel company profits as a leading indicator of weaker iron ore prices.
Philippines CPI rose a weaker-than-expected 4.9% in October vs a year ago, but ANZ’s Chief Economist for Southeast Asia and India Sanjay Mathur says the Philippines’ central bank will be keeping a hawkish eye on inflation.
Cheers
Bernard
Look out tomorrow for a deep dive interview with ANZ’s Head of G3 Economics Brian Martin on a possible recession in Europe.
