In light of this week’s RBA decision to keep policy on hold, we look at the best possible trades in fixed income markets. In our view, inflation-linked bonds, relative to nominals remain a good bet.
According to BCA Research’s Global Investment Strategy service, aggressive fiscal stimulus and labor market flexibility contributed to the relative strength of the US consumer. However, adverse region-specific effects also…
Despite historically high interest rates and the fact that variable-rate mortgage issuances dominate the mortgage market landscape, Australian home prices continue to climb at a close to double-digit annual rate. The Core Logic…
The Reserve Bank of Australia (RBA) left its policy rate unchanged at 4.35% at its May meeting, in line with expectations. The statement highlighted that inflation continues to moderate, though at a slower-than-expected pace.…
Tuesday’s Australian inflation release came in hotter than anticipated. Quarter-on-quarter headline inflation increased from 0.6% in Q4 2023 to 1% in the first quarter of this year, above expectations of 0.8%. Although…
It is too early for the RBA to begin cutting rates. Inflation remains above target, with core CPI currently standing at 3.4%, one of the highest numbers amongst major economies. The labor market is also fundamentally strong.…
The Aussie dollar was among the worst performing G10 currencies on Tuesday on the back of a shift in tone in the Reserve Bank of Australia’s post-meeting statement. Specifically, the RBA replaced the hawkish bias that…
According to BCA Research’s Foreign Exchange Strategy service, Australia’s macroeconomic environment validates a long AUD position, especially at the crosses. The market expects that the RBA will cut interest rates…
In this Insight, we revisit our long AUD trades, after the upgrade from our attractiveness ranking last week.