Is the RBA Looking for More Hikes, or Has It Already Stopped?
On the previous day, the AUD/USD pair remained steady while it continued to decrease after experiencing a significant increase throughout the majority of the previous week. The reason behind this retreat was the weakening of the US dollar due to disappointing inflation figures related to consumer and producer data. The rise in US yields played a role in driving this decline.
As mentioned before, it was not surprising to see a decline in this pair, given that it had risen by approximately 3% last week due to growing speculations of the Federal Reserve opting to halt rate increases this month. It is worth noting that the Reserve Bank of Australia (RBA) may have already put a stop to rate hikes. With the increasing possibility of the RBA pausing its rate hikes, especially after keeping rates steady at 4.10% in the latest meeting, the ongoing surge in the AUD/USD pair is likely to cease soon.
ANZ analysts anticipate that the RBA will maintain interest rates at their present state, and traders eagerly awaited the minutes from the Reserve Bank of Australia's meeting on July 4th for any hints about forthcoming monetary policies. Australia's economic expansion is expected to increase despite a deceleration in the worldwide economy. Additionally, China presented a combination of figures on Monday, with a slight inclination towards positive outcomes.
Yesterday, China shared important data, such as the Q2 GDP numbers, June monthly activity data, and the PBOC MLF fixing. In the initial quarter, the Gross Domestic Product (GDP) showed a bigger expansion than anticipated, indicating a positive economic growth at that time. However, the yearly GDP figure fell below expectations, implying that the overall rate of economic growth might not be as strong as initially predicted.
Furthermore, the manufacturing production exhibited a more robust rise, surpassing expectations and suggesting expansion and efficiency within the manufacturing industry. Conversely, the consumer purchases experienced a noteworthy decline, pointing out a deceleration in consumer expenditure and overall economic operations within the retail sector.
The minutes of the recent RBA meeting this month were made available this morning.
