Asian Currencies Steady as Yen Holds Firm, Oil Tops $100 
China Exports Surge 25% in August as Trade Surplus Hits $119 Billion 
Fitch Eyes Japan Budget for Fiscal Discipline 
Oil Prices Climb as Iran Threatens Gulf Energy Infrastructure 
Asian Stocks Mixed as Korean Chipmakers Rally 
Hormuz Shipping Slows as Iran Threats Lift Oil Risks 
Gold Prices Steady Ahead of U.S. Inflation Data and Fed Decision 
South Korea GDP Surges on Chip and AI Boom 
China Inflation Accelerates in August as CPI, PPI Rise 
Asian Stocks Fall as Oil Tops $100, Yields Rise 
Japan GDP Growth Beats Forecast, Boosting BOJ Rate Hike Bets 
Norway Core Inflation Rises to 3% in August 
Asian Stocks Mixed as AI Chip Rally Meets Oil Surge 
U.S. Stock Futures Steady as Oil Tops $100 Ahead of Inflation Data 
Iran Threatens Gulf Energy Assets as U.S. Tensions Escalate 
Japanese Yen Nears Seven-Month High as Oil Approaches $100 
Brent Oil Tops $100 as Middle East Conflict Threatens Supply 
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Australia’s Central Bank Maintains 4.35% Interest Rate Amid Persistent Inflation
RBA Holds Rates, Monitoring Inflation Risks
The Reserve Bank of Australia (RBA) kept its interest rate unchanged at 4.35% in its November policy meeting, signaling a cautious approach to managing inflation. The decision aligns with market expectations as core inflation remains persistently high despite broader economic slowing. While the headline inflation rate dropped to 2.8% in the third quarter, much of this decrease was attributed to government rebates on electricity bills. Underlying inflation, a key focus for the RBA, remains sticky at 3.5%, above the target range of 2-3%.
Minimal Market Reaction
Following the RBA's decision, the Australian dollar saw limited movement, hovering at $0.6590. Market projections for a rate cut are now pushed to mid-2024, as the RBA intends to maintain restrictive policies until clear signs of slowing core inflation emerge.
RBA Outlook: No Cuts in Sight
Despite modest economic growth in recent quarters, Australia’s labor market has shown resilience. Employment gains averaged 3.1% over the past year, double that of the U.S., with the jobless rate holding steady at 4.1%. This robust labor market strengthens the RBA's stance to keep rates elevated for now, leaving the possibility of rate cuts open but unlikely in the immediate term.
