Lee Sue Ann, Economist at UOB Group, comments on the upcoming RBA gathering on August 1.
Key Takeaways
Headline CPI came in at 0.8% q/q for 2Q23, lower than expectations of 1.0% q/q, and the reading of 1.4% q/q in 1Q23. Compared to the same period a year ago, CPI rose 6.0% y/y, also lower than expectations of 6.2% y/y, and the 7.0% y/y print in 1Q23.
Meanwhile, employment rose by 32,600 positions in Jun, following a 76,500 surge in May. The participation rate remained around record-highs of 66.8%. Strong job growth saw the jobless rate unchanged at 3.5%.
The Reserve Bank of Australia (RBA) is aware that rates are “clearly restrictive”, and there is a chance they remain on pause at 4.10%. However, we look for a further 25bps rate hike, keeping in mind that inflation rates remain substantially above the RBA’s target band of 2-3%. The decision on 1 Aug, will nonetheless, be a close call.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds steady above 0.6400 amid mixed cues
AUD/USD consolidates above the 0.6400 mark during the Asian session on Tuesday. Concerns about the rapidly escalating US-China trade war act as a headwind for the Aussie. The US Dollar languishes near a multi-year low amid the uncertainty over Trump's trade policies and the weakening confidence in the US economy.
USD/JPY recovers slightly from multi-month low; upside seems limited
USD/JPY ticks higher during the Asian session on Tuesday and recovers a part of the previous day's downfall to a fresh seven-month low, though any meaningful upside seems elusive. Trade war concerns, global recession fears, hopes for a US-Japan trade deal, and the divergent BoJ-Fed expectations should continue to underpin the JPY.
Gold price hits fresh record high amid the global rush to safety
Gold price touched a fresh all-time peak, around the $3,444-3,445 area during the Asian session on Tuesday amid worries that an all-out trade war could trigger a global recession. Doubt over Fed independence, which led to the overnight USD slump to a three-year low, and heightened Russia-Ukraine tensions act as a tailwind for the XAU/USD.
ARK Invest integrates Canada's 3iQ Solana Staking ETF into its crypto funds
Asset manager ARK Invest announced on Monday that it added exposure for Solana staking to its ARK Next Generation Internet exchange-traded fund and ARK Fintech Innovation ETF through an investment in Canada's 3iQ Solana Staking ETF.
Five fundamentals for the week: Traders confront the trade war, important surveys, key Fed speech Premium
Will the US strike a trade deal with Japan? That would be positive progress. However, recent developments are not that positive, and there's only one certainty: headlines will dominate markets. Fresh US economic data is also of interest.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.