AIRLINK 74.70 Decreased By ▼ -0.46 (-0.61%)
BOP 5.45 No Change ▼ 0.00 (0%)
CNERGY 4.30 Decreased By ▼ -0.09 (-2.05%)
DFML 28.25 Increased By ▲ 0.61 (2.21%)
DGKC 73.67 Increased By ▲ 1.67 (2.32%)
FCCL 20.61 Increased By ▲ 0.32 (1.58%)
FFBL 31.25 Increased By ▲ 0.20 (0.64%)
FFL 10.02 Increased By ▲ 0.05 (0.5%)
GGL 10.25 Decreased By ▼ -0.02 (-0.19%)
HBL 114.99 Decreased By ▼ -0.01 (-0.01%)
HUBC 132.00 Increased By ▲ 0.55 (0.42%)
HUMNL 6.80 Decreased By ▼ -0.07 (-1.02%)
KEL 4.10 Decreased By ▼ -0.10 (-2.38%)
KOSM 4.80 Increased By ▲ 0.03 (0.63%)
MLCF 38.15 Increased By ▲ 1.07 (2.89%)
OGDC 134.53 Decreased By ▼ -0.92 (-0.68%)
PAEL 23.27 Decreased By ▼ -0.13 (-0.56%)
PIAA 27.52 Increased By ▲ 0.21 (0.77%)
PIBTL 6.55 Decreased By ▼ -0.05 (-0.76%)
PPL 113.68 Increased By ▲ 0.52 (0.46%)
PRL 28.60 Decreased By ▼ -0.15 (-0.52%)
PTC 15.40 Decreased By ▼ -0.10 (-0.65%)
SEARL 57.26 Decreased By ▼ -0.07 (-0.12%)
SNGP 66.71 Decreased By ▼ -0.28 (-0.42%)
SSGC 11.24 Increased By ▲ 0.07 (0.63%)
TELE 9.22 Increased By ▲ 0.08 (0.88%)
TPLP 12.07 Increased By ▲ 0.02 (0.17%)
TRG 70.00 Decreased By ▼ -0.39 (-0.55%)
UNITY 23.89 Increased By ▲ 0.24 (1.01%)
WTL 1.34 No Change ▼ 0.00 (0%)
BR100 7,457 Increased By 2.5 (0.03%)
BR30 24,285 Increased By 35 (0.14%)
KSE100 71,585 Increased By 151.4 (0.21%)
KSE30 23,623 Increased By 56.6 (0.24%)

SYDNEY: The Australian and New Zealand dollars took a step back on Wednesday after a surprisingly low reading on monthly inflation seemed to lessen the risk of another hike in interest rates and boosted bonds.

The Aussie edged down 0.2% to $0.6466, paring some of the 0.8% gain made overnight when a downside surprise in U.S. jobs data hit the U.S. dollar. Resistance lies at a recent top of $0.6488, with support around $0.6400.

The kiwi dollar eased a shade to $0.5954, after rallying almost 1.1% overnight. It faces stiff chart resistance at $0.5984.

Monthly data on Australian consumer prices showed a slim rise of 0.3% in July which saw the annual pace slow to a 17-month low of 4.9%. That was down from 5.4% in June and under forecasts of 5.2%.

Measures of core inflation were higher but also decelerating, leading the market to add to bets that the Reserve Bank of Australia (RBA) was done raising rates. Futures had already almost priced out any chance of a hike in the 4.1% cash rate at the RBA’s September meeting next week, and now implies only a 36% probability of a rise by year end.

Rates are still seen holding steady for an extended period, with no chance of a cut priced until September next year.

“The sharp fall in inflation confirms that the RBA is done tightening and raises the chances that the Bank will start to ease policy earlier than most anticipate,” said By Marcel Thieliant, head of Asia-Pacific economics at Capital Economics.

“The risks are tilted towards rate cuts starting earlier than our current forecast of Q2 2024.”

Yields on three-year bonds eased further to 3.778%, having already dropped 9 basis points overnight as Treasuries rallied.

Ten-year yields were near their lowest in three weeks at 4.06%, putting them 6 basis points under U.S. yields.

Comments

Comments are closed.