Aussie Jumps as RBA Holds Steady, Markets Lifted by China's Stimulus Push
| Action Insight Daily Report 9-24-24 |
Aussie Jumps as RBA Holds Steady, Markets Lifted by China's Stimulus Push |
Australian Dollar surged broadly today following RBA's decision to leave interest rates unchanged at 4.35%, as widely expected. What caught the market's attention was RBA's continued focus on inflation risks, making it clear that the central bank is not considering a rate cut anytime soon. During the post-meeting press conference, Governor Michele Bullock downplayed the significance of tomorrow's monthly CPI data, describing them as volatile and less reflective of the underlying inflation trend. Nevertheless, she clarified that the board did not explicitly consider a rate hike at this meeting, signaling a steady approach for now The broader market mood was lifted by China's announcement of an unexpectedly large stimulus package. The package includes a forthcoming 50 bps reduction in the reserve requirement ratio for banks, along with a cut in the seven-day reverse repurchase rate from 1.7% to 1.5%. Furthermore, PBoC indicated an intention to cut loan prime rates by 20 to 25 basis points, although the timeline for these moves remains unclear, and the details remain sparse. Additional measures were announced, such as reduced down payments for second homes, aimed at stimulating the property market. This is seen as China's most significant stimulus move since the pandemic's onset, but skepticism remains over whether the new measures will be sufficient to fully revitalize the struggling economy.... |
EUR/AUD Daily Outlook Daily Pivots: (S1) 1.6182; (P) 1.6302; (R1) 1.6370; More... EUR/AUD's fall from 1.7180 resumed by breaking through 1.6256 support. Intraday bias stays on the downside for 61.8% projection of 1.7180 to 1.6256 from 1.6629 at 1.6058, which is close to 1.5996 key support level. On the upside, above 1.6315 minor resistance will turn intraday bias neutral first. But outlook will remains bearish as long as 1.6629 resistance holds. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 00:30 | JPY | Manufacturing PMI Sep P | 49.6 | 49.9 | 49.8 | | 00:30 | JPY | Services PMI Sep P | 53.9 | 53.7 | | 04:30 | AUD | RBA Interest Rate Decision | 4.35% | 4.35% | 4.35% | | 05:30 | AUD | RBA Press Conference | | 08:00 | EUR | Germany IFO Business Climate Sep | 86.1 | 86.6 | | 08:00 | EUR | Germany IFO Current Assessment Sep | 86 | 86.5 | | 08:00 | EUR | Germany IFO Expectations Sep | 86.3 | 86.8 | | 13:00 | USD | S&P/CS Composite-20 HPI Y/Y Jul | 5.90% | 6.50% | | 13:00 | USD | Housing Price Index M/M Jul | 0.20% | -0.10% | | 14:00 | USD | Consumer Confidence Sep | 103.5 | 103.3 |
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