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AUD/USD fell below $0.6400 as the RBA maintained rates at 4.35% while adopting a mildly dovish stance. Despite this drop, the pair remains above last Friday's low of $0.6373, with potential resistance at $0.6434 and $0.6482. In contrast, EUR/JPY and USD/JPY are on the rise, with USD/JPY recovering from a low of ¥148.65 and approaching the 55-day SMA at ¥150.88. Further resistance for USD/JPY is seen at ¥151.94.
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The ASX 200 fell 34 points (-0.41%) to 8388 as the Reserve Bank of Australia maintained its cash rate at 4.35% for the ninth consecutive meeting, signaling a dovish shift. Resource stocks surged following China's announcement of 'moderately loose' monetary policies, while financial and technology sectors faced declines. A potential rate cut in February is anticipated, contingent on upcoming economic data.
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BlockFi offers competitive interest rates and a straightforward borrowing process, making it appealing for passive crypto growth, though it has a lengthy withdrawal process. In contrast, Gemini provides robust security and a wide range of features, albeit with higher fees and a complex verification process. Both platforms have strong customer support and mobile apps, but users should weigh the pros and cons based on their individual needs.
Agnico Eagle Mines Limited, a Canadian gold mining company, operates in Canada, Australia, Finland, and Mexico, with a diverse portfolio of exploration and development projects. Key operations include the Canadian Malartic complex, Detour Lake, and Fosterville, among others, while exploration sites span multiple regions, including Anza and Hope Bay/Oro. The Fosterville mine is noted for its low-cost, high-grade underground gold production.
This week’s trade recommendation is to go long on AUD/USD at $0.6415, anticipating a potential bounce due to China's monetary policy easing, which could benefit Australian exports. A stop loss is suggested below the August low at $0.6345, with an upside target around $0.6500. As year-end approaches, traders are advised to consider locking in profits or adjusting stop losses to minimize risk.
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ANZ has appointed Nuno Matos, a former HSBC executive, as its new CEO, effective July 3, 2025, succeeding Shayne Elliott, who is retiring after nine years. Matos brings over 30 years of banking experience and will lead the bank through its merger with Suncorp Bank, focusing on enhancing stakeholder value and customer migration to ANZ Plus.
Australia will abolish AT1 bonds, requiring banks to hold more Tier 2 capital starting January 2027, following a consultation with the banking sector. The Australian Prudential Regulation Authority (APRA) stated that AT1 bonds failed to stabilize banks during financial difficulties, prompting the shift to more reliable capital forms. This change aims to enhance the resilience of Australian banks and reduce the potential need for taxpayer support in future crises.
India should prioritize the internationalization of the rupee rather than pursuing de-dollarization. The US dollar remains the dominant reserve currency, accounting for approximately 58% of global foreign exchange reserves, despite the recognition of eight major reserve currencies by the IMF.
AUD/USD has dropped to a 13-month low of 0.6389, pressured by disappointing Australian Q3 GDP figures and negative sentiment from weak Chinese inflation data. The Reserve Bank of Australia is expected to maintain its cash rate at 4.35%, but a dovish shift may signal potential rate cuts in early 2025.
IG
Australia will abolish AT1 bonds, requiring banks to hold more Tier 2 capital starting January 2027, following a consultation by the Australian Prudential Regulation Authority (APRA). This decision aims to enhance bank stability during crises and reduce reliance on taxpayer support. APRA's chief executive noted that the new capital structure will better equip banks to handle future financial challenges.
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