Markets

Aussie dollar turns villain for RBA as transition under threat

Aussie dollar turns villain for RBA as transition under threat

RBA Governor Philip Lowe said that the strength of the Australian dollar may further pressure consumer prices, therefore affecting outlook for growth and employment.

Dr Oliver said if this happens it will be good for the Australian share market but there may be a further rise in the Australian dollar due to the US Federal Reserve's likely reluctance to raise its interest rate further. This dragged the headline inflation rate for the year to June 30 to 1.9%, which is well below the RBA's target band of 2-3%. Some pick-up in non-mining business investment is expected. One source of uncertainty for the domestic economy is the outlook for consumption. However, wage growth remains low and this is likely to continue for a while yet, the bank added.

'The Australian dollar has appreciated recently, partly reflecting a lower USA dollar'. The unemployment rate is expected to decline a little over the next couple of years.

PMI's are now broadly range bound around the 53-4 level for all three sectors and they are expected to remain around those levels. "Recent declines in the USA dollar and strengthening commodity prices have placed added pressure on the Australian dollar, which may reduce export demand. But, for now, policy still seems set to remain on hold", said Lloyds Commercial Banking's, chief economist, Rhys Herbert, who forecasts a 6-2 split in favour of keeping interest rates unchanged. But Dr Lowe noted that "a factor working in the other direction is increased competition from new entrants in the retail industry".

At least six injured after vehicle plows into crowd in Los Angeles
The impact sent one vehicle into the sidewalk, he added, striking a group of people dining in a restaurant patio. Four people have been rushed to hospital, while two other suffered non-life-threatening injuries .

'If you're trying to figure out what the RBA is going to do, you're probably much better off looking at real growth, that is what's actually happening to employment, what's actually happening to output, than you are to inflation'. In other words, the RBA's fortunes are hitched to those of the White House.

"In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years", Lowe said. "It implies they're a long way from raising interest rates".

Meanwhile, the S&P/ASX 200 index traded 0.35 percent lower at 5,690.50 by 03:50 GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at -11.95 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). There has also been some tightening of credit conditions following recent supervisory measures to address the risks associated with high and rising levels of household indebtedness. Lowe said that growth in housing debt has been beating the sluggish climb in household incomes.


  • Antonio Conte warns new signing over fitness levels

    Antonio Conte warns new signing over fitness levels

    It's shaping up to be a tasty new Premier League season, with Antonio Conte and Jose Mourinho already at each other's throats. However, the war of words between the managers could certainly hamper the relationship between the two clubs in the future.
    Turkey coup trial: nearly  500 in court

    Turkey coup trial: nearly 500 in court

    Nearly 500 people arrested after last year's failed coup in Turkey are to go on trial accused of taking part in the plot. Several similar cases are under way in Turkey after the coup attempt on July 15, 2016 that resulted in some 250 deaths.
    President Trump Holds Major Jobs Announcement

    President Trump Holds Major Jobs Announcement

    Wisconsin governor, Scott Walker announced an award of $3 billion as incentives and also mentioned that a MoU will be signed. Critics have cautioned that Foxconn has made promises before to invest in the USA and not followed through.
  • Baby boy dies after being left in a hot vehicle

    Baby boy dies after being left in a hot vehicle

    She said she didn't know where the auto had been or why it had ended up at the church. "Everyone is cooperative", Fortune said. Fortune said investigators were still interviewing the parents to determine exactly what happened.
    Microsoft Surface Plus Financing Program Lets You Upgrade Very 18 Months

    Microsoft Surface Plus Financing Program Lets You Upgrade Very 18 Months

    Instead of paying the entire cost of a laptop or tablet upfront, this new plan spreads payments over two years on a contract. Less than two weeks later, Apple announced that its new Pencil for the iPad Pro offers just 20ms of latency .
    FCC certifies Samsung's next big smartphone

    FCC certifies Samsung's next big smartphone

    According to the documentation, it is clearly written that the phone will be available for pre order from August 25th. You can expand the memory of this phone upto 256GB, however there is no any confirmation on this.
  • Nicolas Maduro slams U.S.  sanctions against Venezuela

    Nicolas Maduro slams U.S. sanctions against Venezuela

    Opposition leaders had called for a boycott of the vote, declaring it rigged for the ruling party. "But we'll die fighting them". The new Constituent Assembly will allow Maduro's government to rewrite the country's constitution and will grant him more power.
    Kathy Griffin shaves head in support of cancer-stricken sister

    Kathy Griffin shaves head in support of cancer-stricken sister

    No, this gesture has nothing to do her recent national and professional controversy with President Donald Trump , either. While the investigation may be over, the damage was done. 'Kathy Griffin should be ashamed of herself, ' Trump tweeted.
    Laptop Ban on Planes Is Lifted, US Officials Confirm

    Laptop Ban on Planes Is Lifted, US Officials Confirm

    Passengers should be prepared to arrive even earlier to the airport than usual for global flights inbound to the USA - at least three hours in advance.
  • US Conducts Successful THAAD Missile Test

    US Conducts Successful THAAD Missile Test

    But Sunday's test came two days after North Korea conducted its second test of an intercontinental ballistic missile. South Korea had earlier deployed two such units but the rest were delayed due to environmental concerns.
    Surprise vote in Senate defeats Obamacare repeal

    Surprise vote in Senate defeats Obamacare repeal

    The Senate returns to work Monday but without Senator John McCain , who will continue treatments for brain cancer in Arizona. And plans to eliminate Obama's medical device tax could be abandoned because Republicans need that money for their package.
    Gunmen attack Kenyan Deputy President Ruto's residence

    Gunmen attack Kenyan Deputy President Ruto's residence

    The security official said Ruto had left his home shortly before the attack to attend a campaign rally with Kenyatta. In the Rift Valley, hate speech flyers have been circulating and some local residents have already left their homes.