Compass Global Markets' Blog

Market Update - 8th November 2017 - RBA Keeps Rates On Hold, But Warns Again Of High Debt Levels

Posted by Patrick Downes on November 8, 2017 at 9:38 AM

The RBA kept rates on hold again yesterday surprising no one and stretching to seven the number of years it's been since we've seen a rate hike in Australia. It certainly appears at this stage like the RBAs hands are tied with slow growth and poor retail sales essentially putting any requirement to hike well and truly on the back burner. However high indebtedness remains a concern with household debt to income reaching 193% in the latest quarter.

Things however can change quickly and with a resurgent mining sector, thanks to Lithium, Nickel and Zinc and a Gold rush in the Pilbara higher rates should probably be expected in the years ahead. Higher interest rates would bring some normality back to things allowing savers to earn a good return but whether we see a boost in the Aussie dollar really depends on how the other economies around the world are going.

Very little economic data out today and rates are mostly stable since Monday.

AUD EXCHANGE RATES:

AUD/USD – 0.7645

AUD/GBP – 0.5806

AUD/EUR – 0.6595

AUD/NZD – 1.1068

AUD/JPY – 87.125

COMMODITIES: 

Gold – A$1669/oz

Silver –  A$22.20/oz

WTI – US$57.37/barrel

DATA RELEASES TODAY:

CNY - Trade Balance Figures due

***Above rates are indicative wholesale rates and intended as a guide only***

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick - 0431 278 632 

  Email Patrick: patrick@compassmarkets.com

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Topics: Market, Report

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