RBA Holds Interest Rate at 4.35% Amid Inflation Concerns
Forex Market Update – September 24, 2024
Today’s market continues to react to mixed global economic data, with commodities and currencies showing varied movements across the board. Below is an overview of the key events and market changes.
Major Currency Movements
- EUR/USD: The euro is trading at 1.11050, down 0.05% as of this morning. With the European PMI data reflecting persistent contraction in manufacturing, the euro faces pressure this week.
- GBP/USD: The pound is trading at 1.33327, down 0.12%. Despite last week’s positive UK retail sales, the market is weighing the upcoming PMI data expected later today.
- AUD/USD: The Australian dollar is at 0.68151, down 0.26%. With the RBA holding interest rates at 4.35%, there’s limited upward momentum for the AUD despite global risk sentiment.
- USD/JPY: The yen is trading at 144.285, up 0.45% as the US dollar gains some ground. Traders are awaiting further US economic data to assess dollar strength.
Commodities Overview
- Natural Gas: Prices are at $2.6486/MMBtu, rising 1.36% today. With supply pressures and rising demand, natural gas is expected to remain volatile in the coming days.
- Crude Oil: WTI crude oil is trading at $71.16 per barrel, up 1.13%, while Brent is at $74.60, up 0.95%. Oil prices are seeing steady gains. This is due to global supply cuts by OPEC+. These cuts continue to influence the market despite concerns around long-term demand.
- Gold: Gold is trading at $2,627.07 per ounce, up 0.03%. Gold remains stable as investors look for safe-haven assets amidst uncertainty in global markets. (Wells Fargo Advisors).
- Silver: Silver is trading at $30.709 per ounce, reflecting a 0.10% gain. While not as volatile as gold, silver is also benefiting from the safe-haven demand.
Key Data
- RBA Interest Rate Decision: The RBA held its interest rate at 4.35% today, aligning with market expectations. The central bank continues to monitor inflation and the impact of global economic conditions on Australia’s economy (Wells Fargo Advisors).
- UK Retail Sales: UK retail sales for August came in stronger than expected, up 1% month-on-month. This helped support the pound last week, though it faces renewed pressure ahead of today’s PMI data.
- US PMI: The US PMI data, which was released yesterday, continues to show a mixed picture. While manufacturing remains below expectations, services PMI showed resilience, contributing to the USD strength.
Looking ahead, traders will be closely watching upcoming RBA statements. They will also monitor the US GDP data expected later this week. This will provide further direction in the forex and commodities markets.