The final Reserve Bank of Australia policy meeting for the year was the main focus of the session. The RBA delivered an ‘as expected’ cash rate hike of 0.25% that takes it to 3.1%.

The statement from Governor Lowe was strongly suggestive of further rate hikes to come.

The Bank next meets on February 7, there is no January meeting.

The Australian dollar popped a few tics higher after the announcement and the not dovish statement.

Prior to the RBA decision from Australia was Q3 current account data. The current account fell into a deficit of AUD2.3bn in the quarter, down from a surplus of AUD14.7bn in Q2. It is the first current account deficit since Q2 of 2019. Contributors were:

  • prices for resource exports fell back
  • robust domestic demand pulled in more imports
  • The Australian Bureau of Statistics also noted "high operating profits, and increased non-resident investment in resource sector, which led to strong dividend payments to non-resident portfolio investment.”

We get data for Q3 GDP tomorrow (Wednesday, 7 December 2022 at 0030 GMT) from Australia. Net exports will take 0.2% from GDP.


In the earlier part of the session we had a very small retrace move for the US dollar pretty much across the majors board. The USD had strengthened on Monday, US time, following a strong services PMI result. After the small retrace in the Asian morning we had a pop back up for the USD. USD/JPY traded above 137.00. EUR, GBP, AUD, NZD all fell a touch, but didn’t make fresh lows (compared with Monday US time) like the yen did. A bid for oil helped CAD to remain more or less steady.


In sad news, Emmy award-winning actor Kirstie Alley passed away. A great entertainer. RIP.

kirstie alley died