Aussie Surges After RBA Minutes as Macquarie Trims Projection
March 18, 2014 8:15 am
Australia’s dollar continued an upbeat note versus all its major counterparts after Reserve Bank policy makers reiterated a period of steady borrowing costs was likely.
The Aussie exchanged 0.5 percent from a three-month high against the greenback after the release today of minutes from this month’s meeting, when the central bank held its benchmark rate at a record low. Australia’s government bonds pulled back, driving yields to a higher note for a second day, after Macquarie Group Ltd. pushed back rate-slashes projections.
“It’s a confirmation of what the RBA’s previously said, that they’re likely to keep rates on hold for a period of time,” said Janu Chan, an economist at St. George Bank Ltd. in Sydney. “That’s giving the Aussie underlying support.”
Australia’s dollar was slightly altered at 90.83 U.S. cents at 12:09 p.m. in Sydney from yesterday, when it leaped 0.7 percent. The currency touched 91.33 on March 7, the topmost mark since December 11. It moved towards the 200-day moving average at 91.49. New Zealand’s dollar was at 85.63 U.S. cents from 85.65.
The yield on Australia’s 10-year government bond rallied five basis points, or 0.05 percentage point, to 4.09 percent.
“Timely indicators were consistent with some improvement in economic conditions over recent months,” the RBA said in minutes of its March 4 meeting, where it kept the benchmark cash rate at 2.5 percent. “The decline in the exchange rate seen to date would assist in achieving balanced growth in the economy, though members noted that the exchange rate remained high by historical standards.”
Macquarie released its RBA rate-cut projection to the third quarter from the second and estimated 2.25 percent will be the terminal rate for the easing cycle, based in an email from the lender today. Westpac Banking Corp. yesterday bring down its projection for additional Reserve Bank easing, predicting a rate hike in the latter half of next year.
The material has been provided by InstaForex Company – www.instaforex.com
Australia’s dollar continued an upbeat note versus all its major counterparts after Reserve Bank policy makers reiterated a period of steady borrowing costs was likely.
The Aussie exchanged 0.5 percent from a three-month high against the greenback after the release today of minutes from this month’s meeting, when the central bank held its benchmark rate at a record low. Australia’s government bonds pulled back, driving yields to a higher note for a second day, after Macquarie Group Ltd. pushed back rate-slashes projections.
“It’s a confirmation of what the RBA’s previously said, that they’re likely to keep rates on hold for a period of time,” said Janu Chan, an economist at St. George Bank Ltd. in Sydney. “That’s giving the Aussie underlying support.”
Australia’s dollar was slightly altered at 90.83 U.S. cents at 12:09 p.m. in Sydney from yesterday, when it leaped 0.7 percent. The currency touched 91.33 on March 7, the topmost mark since December 11. It moved towards the 200-day moving average at 91.49. New Zealand’s dollar was at 85.63 U.S. cents from 85.65.
The yield on Australia’s 10-year government bond rallied five basis points, or 0.05 percentage point, to 4.09 percent.
“Timely indicators were consistent with some improvement in economic conditions over recent months,” the RBA said in minutes of its March 4 meeting, where it kept the benchmark cash rate at 2.5 percent. “The decline in the exchange rate seen to date would assist in achieving balanced growth in the economy, though members noted that the exchange rate remained high by historical standards.”
Macquarie released its RBA rate-cut projection to the third quarter from the second and estimated 2.25 percent will be the terminal rate for the easing cycle, based in an email from the lender today. Westpac Banking Corp. yesterday bring down its projection for additional Reserve Bank easing, predicting a rate hike in the latter half of next year.
The material has been provided by InstaForex Company – www.instaforex.com
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