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23 Sep 2025

Steady as she goes

• FX consolidation. In contrast to the dip in US equities & yields the USD tread water. AUD near ~$0.66. Fed Chair Powell notes the “challenging situation”.• AU CPI. Monthly CPI indicator due today. Base effects & leading indicators point to a pick up in inflation. RBA looks set to remain on a different path to its peers. Global Trends Steady as she goes, at least in FX, with the major currencies treading water over the past few sessions after last week’s US Fed induced burst of volatility. EUR (the major USD alternative) is tracking just above ~$1.18, USD/JPY (the...

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Fedspeak Deluge Keeps Markets Guessing

The dollar is treading water against its major peers, Treasury yields are drifting lower, and equity futures are pointing to modest gains at the open as investors parse mixed signals emanating from Federal Reserve officials. Yesterday’s chorus of Fed speakers was, on balance, decidedly hawkish. St. Louis’ Alberto Musalem said “I supported the 25-basis-point reduction in the FOMC’s [Federal Open Market Committee’s] policy rate last week as a precautionary move intended to support the labor market at full employment and against further weakening. However, I believe there is limited room for easing further without policy becoming overly accommodative”. Atlanta’s Raphael...

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