Economists at ANZ Bank have downgraded their Australian GDP forecast to 1.5% year-on-year by end-2023. Notwithstanding the slower forecast growth trajectory, the the extent of RBA tightening is unchanged. Growth downgrade doesn’t change the policy outlook “We have downgraded our Australian GDP forecast to 1.5% YoY by end-2023 (prev: 1.8%) but expect Australia willavoid recession
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The US rate hikes continue to cast shadows on gold’s upside potential. The aggressive rate hikes of the US Federal Reserve made the US currency an attractive destination for more yield, prompting selling pressure in gold-like non-interest yielding assets. After hiking rates by seventy-five basis points in the past four successive meetings, the US central
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“The (UK) health secretary, Steve Barclay, is expected to contact health unions to urge fresh talks aimed at averting further strikes, amid new warnings that more action could put patients in danger,” reported The Guardian during the weekend. Key quotes It comes as No 10 rejected a proposal to give nurses a one-off lump-sum payment in
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Treasury yields tried to move up today but cracked back lower. That’s left: 2s -8.3 bps to 4.16% 10s +2 bps to 3.71% 30s +2.7 bps to 3.52% The first thing to note is the inversion of the yield curve, which is still at 69 bps despite today’s bull flattening. The second thing to note
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In the past year we’ve seen the implosions of: NFTs Meme stocks Crypto Tech stocks With that, you would think retail traders would sober up. Instead, they’ve switched from hard liquor to crack cocaine in the of ultra-short-dated equity options. Here’s a chart from Goldman Sachs showing that 44% of SPX volume in the third
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gold buying typically happens behind the scenes, the recent record-high purchases created a stir in the market and raises the question of whether central banks know more. Judging by their investment performance, we do not believe they know more. Instead, we see their behaviour as sending political statements to Washington, Berlin, or Brussels. Dating back
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Risk sentiment took a U-turn last week after more hawkish than expected FOMC projections and, more important, ECB forward guidance. Euro ended as the biggest winner for the week, trained by Swiss Franc, and the Dollar. Australian Dollar was the worst performer, followed by Sterling, and then Kiwi. Canadian Dollar and Yen ended mixed. The
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Risk aversion weighed on high-beta currencies like the Australian Dollar. Global central banks hiking rates and eyeing additional increases sounded recession alarms, dampening investors’ mood. AUD/USD Price Analysis: Downward biased, after tumbling from weekly highs, heading to the 50-day EMA. The Australian Dollar (AUD) slides against the US Dollar (USD) amidst a dampened market sentiment
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