![]() ![]() All quoted exchange rates are indicative. We intend to merely bring together and collate the latest views and news pertaining to the currency markets - subsequent decision making is done so independently of this website. If we are unable to resolve your complaint, or if you would like more information about IPSO or the Editors’ Code, contact IPSO on 03 or visit The news and information contained on this site is by no means investment advice. If you think that we have not met those standards and want to make a complaint, please contact the Editor. We abide by the Editors’ Code of Practice and are committed to upholding the highest standards of journalism. Pound Sterling Live is a member of the Independent Press Standards Organisation (which regulates the UK’s magazine and newspaper industry). Any copying and reproduction of our content - verbatim or altered - will prompt a response from our legal representatives. Given today's data perhaps this trend is losing its lustre.Īll Content © Pound Sterling Live 2021. This confirms that a key story of 2022 has been relative trade dynamics, with those countries able to export seeing their currencies better supported. The surge in commodity prices boosted Australia's terms of trade while negatively impacting that of the UK. GBP/AUD has been consolidating for much of September following months of declines that accelerated in the wake of Russia's invasion of Ukraine. ![]() Dollar exchange rate was lower at 0.6740, the Pound to Australian Dollar (GBP/AUD) higher at 1.7076. Image source: ABS.įollowing the developments the Australian to U.S. The ABS said goods and services exports fell $6,077m (9.9%) to $55,282m, driven by falls in export values of coal, metals ores and minerals.Ībove: Australia's trade balance has fallen sharply. This offers a compelling supply and demand dynamic that has meant the Aussie is one of the best performing currencies of 2022.īut a decline in the positive trade balance challenges this. The trade balance is a key fundamental support for the Australian Dollar as it suggests the country earns more in foreign currency than it spends. Lowe also noted Australia's July trade surplus also came in smaller than expected.Īustralia reported the seasonally adjusted balance on goods and services surplus decreased A$8,398m to A$8,733m in July. "We acknowledge that there is a considerable risk that the RBA could slow its hiking to 25bp in October, in which case we would expect an additional 25bp hike early next year, leaving the terminal rate at 3.35%," says Adelaide Timbrell, Senior economist at ANZ. 25bp hike in November (to 3.1%) – down from 50bp 50bp hike in October (to 2.85%) – unchanged from our earlier expectations Federal Reserve is expected to deliver another 75 basis point hike on September 21 and is often seen as setting the pace for other central banks in a quest to raise interest rates to fight inflation.įollowing the speech economists at Australian lender ANZ said they have updated our forecasts based on RBA rhetoric from this week and their expectations of the data: Lowe said the RBA could afford to slow down due to differences in wage setting behaviour in Australia compared to the U.S. "AUD is underperforming in otherwise quiet overnight markets after dovish comments from RBA Governor Lowe, suggesting the pace of hikes may slow in the coming months," says Adam Cole, Chief Currency Strategist at RBC Capital Markets. Lowe's comments offer concrete evidence this is indeed the case. ![]() Pound Sterling Live reported at the time the guidance coming from the RBA suggested the central bank was ready to slowdown. The comments follow Tuesday's RBA decision to hike interest rates by 50 basis points. "How high interest rates need to go and how quickly we get there will depend on incoming data and the evolving outlook for inflation and the labour market," he added. Lowe told an audience at the Anika Foundation there was a case for a slower pace of rate hikes as the cash rate rises, saying “all else equal, the case for a slower pace of increase in interest rates becomes stronger as the level of the cash rate rises”. Governor Philip Lowe confirmed the Reserve Bank of Australia (RBA) is nearing the end of its interest rate hiking cycle, leading to a lower Australian Dollar.įurther pressure on the Aussie meanwhile came from data showing the country's stellar trade surplus plummeted in July. Image © Crawford Forum, Reproduced Under CC Licensing ![]()
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