Australia’s core consumer prices gained more than economists forecast last quarter, affirming policy makers’ decision to adopt a neutral interest-rate stance. The trimmed mean gauge of core prices rose 0.8 percent from the previous quarter, the Bureau of Statistics said in Sydney today, compared with the median forecast of 25 economists for a 0.6 percent gain. The consumer price index advanced 0.5 percent from the previous three months, matching economists’ estimates.
The currency rose as investors bet Reserve Bank of Australia Governor Glenn Stevens is unlikely to cut the record-low 2.5 percent benchmark rate in the months ahead. The central bank has lowered borrowing costs by 2.25 percentage points since late 2011 as the local dollar’s strength dragged on growth and a mining investment boom crested.
“Softer domestic demand hasn’t flowed through to lower price growth as much as expected,” Katrina Ell, an economist at Moody’s Analytics in Sydney, said before the report. “The data doesn’t change the RBA’s stance that rates will be on hold through 2014. We do not expect rate normalization to begin until the first quarter of 2015, at the earliest.”
Recommended Content
Editors’ Picks
AUD/USD: The hunt for the 0.7000 hurdle
AUD/USD quickly left behind Wednesday’s strong pullback and rose markedly past the 0.6900 barrier on Thursday, boosted by news of fresh stimulus in China as well as renewed weakness in the US Dollar.
EUR/USD refocuses its attention to 1.1200 and above
Rising appetite for the risk-associated assets, the offered stance in the Greenback and Chinese stimulus all contributed to the resurgence of the upside momentum in EUR/USD, which managed to retest the 1.1190 zone on Thursday.
Gold holding at higher ground at around $2,670
Gold breaks to new high of $2,673 on Thursday. Falling interest rates globally, intensifying geopolitical conflicts and heightened Fed easing bets are the main factors.
Bitcoin displays bullish signals amid supportive macroeconomic developments and growing institutional demand
Bitcoin (BTC) trades slightly up, around $64,000 on Thursday, following a rejection from the upper consolidation level of $64,700 the previous day. BTC’s price has been consolidating between $62,000 and $64,700 for the past week.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.