RBA supports Aussie Dollar

Daily Analysis - 03/12/2019

Reserve Bank of Australia keeps its rates low


On Tuesday the Reserve Bank of Australia announced that it kept its main interest rate at 0.75% which is a record low. This decision is in harmony with the anticipation of most market participants and analysts according to a survey. This is the third time that RBA cut rates since June this year. Philip Lowe the RBA Governor said in a statement “The easing of monetary policy this year is supporting employment and income growth in Australia and a return of inflation to the medium-term target range”. The Australian dollar exchanged at $0.6838 after RBA’s decision regarding its interest rate following a low of $0.6811 earlier.

Gold uncertain after Trump threatens Brazil and Argentina with tariffs

On Tuesday the safe haven metal Gold was exchanging in a tight range while traders waited, even as Donald Trump the US President proceeds with taxes on Brazil and Argentina. A move that hit the markets with new global trade tensions. US gold futures dropped 0.2% to $1,466.59 while Spot gold slid 0.1% to $1,460.90 per ounce.


Oil slowly starts to move

On Tuesday Oil grew, as OPEC and its partners consider whether to extend a supply reduction agreement before their meetings this week. However, possibilities following Saudi Arabia’s programmed listing of Aramco stoked uncertainty among traders, restricting profits. US West Texas Intermediate crude gained 20 cents, at $56.15 a barrel. Yesterday the contract increased by 1.4%. Brent futures went up by 13 cents, to $61.04 a barrel following a gain of 0.7% yesterday.


The greenback in defensive mode

On Tuesday the popular greenback exchanged close to a seven-day low against the Japanese yen and near its weakest level in almost fourteen-days versus the euro. The reason for that is due to anxiety regarding limited US manufacturing numbers and indications of new problems in the US trade war. The dollar exchanged at 109.17 yen on Tuesday in Asia, close to its weakest in a week. It was valued at $1.1074 against the euro following a fall of 0.56% on Monday. This is the most significant drop versus the single currency since last September.


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