final Reserve Bank of Australia policy meeting for the year was the
main focus of the session. The RBA delivered an ‘as expected’
cash rate hike of 0.25% that takes it to 3.1%.
statement from Governor Lowe was strongly suggestive of further rate
hikes to come.
The Bank next meets on February 7, there is no January
Australian dollar popped a few tics higher after the announcement and
the not dovish statement.
to the RBA decision from Australia was Q3 current account data. The
current account fell into a deficit of AUD2.3bn in the quarter,
down from a surplus of AUD14.7bn in Q2. It is the first current
account deficit since Q2 of 2019. Contributors were:
for resource exports fell back
domestic demand pulled in more imports
Australian Bureau of Statistics also noted “high operating
profits, and increased non-resident investment in resource sector,
which led to strong dividend payments to non-resident portfolio
get data for Q3 GDP tomorrow (Wednesday, 7 December 2022 at 0030 GMT)
from Australia. Net exports will take 0.2% from GDP.
the earlier part of the session we had a very small retrace move for
the US dollar pretty much across the majors board. The USD had
strengthened on Monday, US time, following a strong services PMI
result. After the small retrace in the Asian morning we had a pop
back up for the USD. USD/JPY traded above 137.00. EUR, GBP, AUD, NZD
all fell a touch, but didn’t make fresh lows (compared with Monday
US time) like the yen did. A bid for oil helped CAD to remain more or
In sad news, Emmy award-winning actor Kirstie
Alley passed away. A great entertainer. RIP.