The RBA kept rates on hold again yesterday surprising no one and stretching to seven the number of years it’s been since we’ve seen a rate hike in Australia. It certainly appears at this stage like the RBAs hands are tied with slow growth and poor retail sales essentially putting any requirement to hike well and truly on the back burner. However high indebtedness remains a concern with household debt to income reaching 193% in the latest quarter.
Things however can change quickly and with a resurgent mining sector, thanks to Lithium, Nickel and Zinc and a Gold rush in the Pilbara higher rates should probably be expected in the years ahead. Higher interest rates would bring some normality back to things allowing savers to earn a good return but whether we see a boost in the Aussie dollar really depends on how the other economies around the world are going.
Very little economic data out today and rates are mostly stable since Monday.
AUD EXCHANGE RATES:
AUD/USD – 0.7645
AUD/GBP – 0.5806
AUD/EUR – 0.6595
AUD/NZD – 1.1068
AUD/JPY – 87.125
Gold – A$1669/oz
Silver – A$22.20/oz
WTI – US$57.37/barrel
DATA RELEASES TODAY:
CNY – Trade Balance Figures due
***Above rates are indicative wholesale rates and intended as a guide only***
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