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Australia RBA meeting minutes, oil and currencies


SINGAPORE – Asia-Pacific markets were mostly active on Tuesday while bitcoin continued to rally after its recent rally. Australia’s central bank said inflation will peak by year-end before the minutes of the meeting are released this morning.

Japanese Nikkei 225 1.67% higher while Topix gained 1.72%. The Kospi in Korea was also positive, trading 0.13% higher.

of Australia S&P / ASX 200 gained 1.14% and the MSCI index of Asia-Pacific shares, the broadest outside of Japan, gained 0.12%.

Before the Reserve Bank of Australia released the minutes of the meeting, Governor Philip Lowe said in a statement that he expected inflation in Australia to peak around 7% by year-end as supply chain disruptions pandemic-related response is resolved.

Lowe said tightening monetary policy and raising interest rates globally would work together to reduce inflation by creating a balance between supply and demand for goods.

“Getting that balance right is not straightforward and comes with risks, but higher interest rates should ease current inflationary pressures,” he said, adding that Australia should expect more hikes. interest rates more with the RBA committed to charting a return to 2% to 3% inflation.

Elsewhere, European Central Bank President Christine Lagarde reiterated the ECB’s plan to raise interest rates twice this summer and emphasized a 2% inflation target, according to Reuters.

“These decisions form the basis of our previous commitments to tailor all tools within our mandate, incorporating flexibility where warranted, to,” Lagarde said. ensure stable inflation at the 2% target over the medium term,” Lagarde said, according to the report.

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US markets will return to trading on Tuesday after a holiday on Monday. The major averages last week suffered their 10th week of declines in 11 on fears that the central bank will raise interest rates aggressively to rein in inflation that threatens to trigger a recession. The S&P 500 fell 5.8% last week for its biggest weekly drop since March 2020, plunging deeper into bear market territory.

The largest cryptocurrency in the world bitcoin increase on next monday fell below 2017 highs at the end of the week. It rallied above the $20,000 mark for most of the day. On Tuesday during Asian trading hours, bitcoin last rose 2.74% to around $20,638, according to Coin Metrics data.

Currency

The US Dollar Indextracks the greenback against its basket of currencies, at 104.407.

The Japanese yen was trading at 135.05 per dollar weakening from levels above 134. Australian dollar at $0.6981, still soft from last week’s trade above $0.70.

Oil price this morning is higher than international standards Brent Crude Oil Futures up 1.04% to $115.32 per barrel. US crude oil futures also increased 1.82% to 111.55 USD/barrel.



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