Aussie Weakens as RBA Adopts Dovish Tone

Breaking Down the Financial Markets on December 10

RBA Keeps Rates Unchanged

• The Reserve Bank of Australia (RBA) maintained the Official Cash Rate (OCR) at 4.35%.
• The RBA expressed confidence in declining inflationary pressures.
• AUD/USD faced bearish pressure, trading near 0.6400.
  

  Australian Dollar Performance Today
  

  Weakest Against the Swiss Franc
  

  | | USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF |
  |———–|———-|———-|———-|———-|———-|———-|———-|———-|
  | USD | -0.09% | -0.06% | 0.02% | 0.00% | 0.63% | 0.53% | -0.12% |
  | EUR | 0.09% | -0.04% | 0.08% | 0.08% | 0.72% | 0.63% | -0.03% |
  | GBP | 0.06% | 0.04% | 0.04% | 0.07% | 0.68% | 0.59% | -0.07% |
  | JPY | -0.02% | -0.08% | -0.04% | 0.02% | 0.65% | 0.54% | -0.11% |
  | CAD | -0.00% | -0.08% | -0.07% | -0.02% | 0.63% | 0.54% | -0.11% |
  | AUD | -0.63% | -0.72% | -0.65% | -0.63% | -0.10% | -0.74% |
  | NZD | -0.53% | -0.63% | -0.54% | -0.54% | 0.10% | -0.65% |
  | CHF | 0.12% | 0.03% | 0.11% | 0.11% | 0.74% | 0.65% |

  China Trade Surplus Widens
  

• China’s trade surplus expanded to $97.44 billion in November.
• Exports increased by 6.7%, while imports declined by 3.9%.
  

  US Dollar Index Update
  

• The USD Index rose slightly above 106.00 in the European session.
• 10-year US Treasury bond yield fluctuates below 4.2%.
  

  Currency Pair Performance
  

• EUR/USD: Holds above 1.0550.
• GBP/USD: Consolidates around 1.2750.
• USD/JPY: Sideways movement above 151.00.
  

  Gold Prices Surge
  

• Gold prices rose about 1% on Chinese stimulus hopes.
• XAU/USD trades near $2,670.
  

  Central Banks FAQs
  

  Key Information
  

  1. Price Stability Mandate: Central banks aim to maintain price stability to manage inflation or deflation.
  2. Interest Rate Policy: Tweaking policy rate to control inflation and stimulate or cool the economy.
  3. Doves vs. Hawks: Members with differing views on monetary policy, influencing rate decisions.
  4. Chairman’s Role: Leading meetings, creating consensus, and communication with the market.

     Understanding these concepts can help individuals navigate the financial markets and make informed decisions about their investments and financial future.