EUR/USD 1.17386
-0.059%
Gold 4341.84
0.530%
Oil 56.751
-1.182%
USD/JPY 156.668
-0.001%
GBP/USD 1.34898
0.123%
GBP/JPY 211.348
0.136%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
U.S. stocks opened higher but closed lower, with the Dow Jones Industrial Average and S&P 500 both turning negative.Ukrainian President Zelensky: Ivashenko, the head of the Foreign Intelligence Service, will be appointed as the new head of the Military Intelligence Service.Intel (INTC.O) extended its gains to 8%.On January 2nd, Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, stated that while manufacturers continued to increase output in December, suggesting the goods-producing sector will contribute to further strong economic growth in the fourth quarter, the outlook for early 2026 looks less optimistic. In fact, the gap between production growth and declining orders is the largest since the 2008-2009 global financial crisis. Unless demand improves, current factory production levels are clearly unsustainable. If production capacity has to be reduced, employment will also be adversely affected. A key factor contributing to concerns about sales is the extent to which producers will have to pass on higher costs to consumers in the form of price increases, with the cost increases still largely attributed to tariffs. Input cost inflation slowed to its lowest level since January of last year in December, providing some encouragement. However, while this cost trend suggests that the impact of tariffs on inflation peaked as early as the summer, costs are still rising at a high rate month-on-month, indicating that cost increases for U.S. businesses continue to outpace those of their competitors in most other major economies.The final reading of the S&P Global Manufacturing PMI for December in the United States was 51.8, in line with expectations and the previous reading of 51.8.

AUD/USD jumps to approximately 0.6820 before to the Reserve Bank of Australia's policy announcement

Alina Haynes

Dec 05, 2022 14:17

 AUD:USD.png

 

During the Tokyo session, the AUD/USD pair enjoyed a substantial rebound following a corrective decline below 0.6780. In response to the risk appetite profile, the Australian dollar has accelerated to roughly 0.6820 and is expected to continue its gains above the previous week's 0.6845 high.

 

In the meantime, the US Dollar Index (DXY) has climbed somewhat sideways above Friday's low of 104.40, as bullish market sentiment has lessened the desirability of safe-haven assets. The optimistic Nonfarm Payrolls (NFP) report from the United States has failed to strengthen the US Dollar. Compared to the previous report, the US economy added 263,000 jobs in November, an increase of 53 percent. In addition, the yearly increase in the labor cost index has reached 5.1%.

 

As households acquire more disposable income, a robust labor market and rising wages indicate a rise in inflationary pressures. This may lead to a rise in demand for perishable and durable goods, hence supporting price rises.

 

On the antipodean front, investors await Tuesday's announcement of the Reserve Bank of Australia's (RBA) interest rate decision. We anticipate another 25 basis point (bps) increase at the final monetary policy meeting of the year on December 6, bringing the OCR to 3.10 percent, according to economists from UOB Group.

 

Notably, this might be RBA Governor Philip Lowe's third consecutive 25-bps rate increase. The monthly Consumer Price Index (CPI) decreased from 7.1% in September to 6.9% in October. Inflation remains well above the target of 2%, necessitating a continuation of policy tightening.

 

Moreover, investors will track the Caixin Service PMI data. It is anticipated that the economic statistics will be somewhat higher at 48.8 than the previous report of 48.4.


Suggestion