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23 Sep 2024

Will the RBA hold the line?

• Upbeat tone. Last weeks larger than expected rate cut by the US Fed continues to wash through markets. US PCE deflator in focus this week.• Global PMIs. Softer Eurozone PMIs weighed a bit on the EUR. US PMIs holding up. Cyclical currencies like the NZD & AUD remain firm.• RBA today. In contrast to its peers the RBA is expected to keep rates on hold today. Divergence between the RBA & others is underpinning the AUD. The implications of last week’s bigger than expected 50bp rate cut by the US Federal Reserve continues to be digested by markets. The...

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Markets Steady Ahead of Fedspeak Deluge

Financial markets are seeing consolidative trading patterns take hold after last Wednesday’s bold and decisive move from the Federal Reserve. The dollar is advancing off Friday’s lows, long-term Treasury yields are rising, equity futures are pointing to a healthy open, and the VIX “fear index” – a measure of expected volatility – is pushing lower, suggesting that policymakers succeeded in delivering an emergency-sized rate cut without convincing investors that an emergency is underway. This week, words might speak louder than actions. The Conference Board’s consumer confidence index will drop tomorrow, Thursday will bring durable goods orders and weekly unemployment claims,...

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