S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
Commerzbank strategists note AUD/USD held at 0.7200 on Friday and gained modestly over the week as markets price further Reserve Bank of Australia (RBA) tightening. Overnight index swaps imply a high probability of a third consecutive 25 bp hike to 4.35% and additional tightening by year-end. They attribute this to inflation staying above target, driven by fuel costs and resilient domestic demand.
Market leans to further RBA tightening
“AUD/USD was unchanged at 0.7200 last Friday but gained 50 pips last week.”
“The Reserve Bank of Australia (RBA) meets tomorrow.”
“The OIS market is pricing in a 74% chance of a third consecutive 25bp hike to 4.35%.”
“They are pricing in a total hike of 64bp by year-end.”
“The main reason is due to elevated inflation, which is expected to stay above the 2-3% target band, driven by higher fuel costs and resilient domestic demand.”
