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RBA interest rate cut expectations remain cautious ahead of meeting

RBA cuts interest rates to 4.1% but banks predict no further cuts in April despite easing inflation pressures.

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RBA cuts interest rates to 4.1% but banks predict no further cuts in April despite easing inflation pressures.

The Reserve Bank of Australia (RBA) cut interest rates to 4.1 per cent for the first time since November 2020 in February. However, mortgage holders should not expect consecutive cuts when the board announces its decision today.

Australia’s inflation rate fell to 2.4 per cent in February, with underlying inflation at 2.7 per cent. Economist Stephen Koukoulas highlighted strong reasons for another interest rate cut based on these inflation figures.

Despite this, economic teams from Australia’s Big Four banks predict that rates will remain unchanged. Gareth Aird from CBA pointed out that data has been softer than RBA’s expectations, but not enough to compel a rate cut. Aird noted that further cuts would indicate a significant shift in RBA’s economic outlook in a short time frame.

The banks predict the next quarterly inflation data due on April 30 will be below RBA forecasts, potentially paving the way for a 0.25 per cent cut in May. The unemployment rate is stable at 4.1 per cent, also not prompting an immediate rate change in April.

CBA, Westpac, NAB, and ANZ all expect the cash rate to be held steady at 4.1 per cent today. Looking ahead, CBA and Westpac foresee three total cuts this year, while ANZ anticipates only one.

A mortgage of $600,000 could see monthly repayments reduce by $91 with a 0.25 per cent cut. Experts surveyed largely believe the RBA will maintain the current rate in April. Their next meeting is scheduled for 2:30 pm AEDT today. Further meetings will occur periodically until November.

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Wall Street gains momentum amid tech and earnings surge

U.S. stocks rose Monday, driven by Oracle gains, as investors overlooked recent silver and bitcoin losses ahead of earnings week.

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U.S. stocks rose Monday, driven by Oracle gains, as investors overlooked recent silver and bitcoin losses ahead of earnings week.

U.S. equities climbed on Monday as Wall Street kicked off a new month of trading. Investors looked past recent losses in silver and bitcoin, with optimism returning to major indices. The S&P 500 rose 0.7%, led by gains in Oracle shares following the company’s announcement to raise up to £50 billion for cloud capacity.

The Dow Jones Industrial Average surged 501 points, while the Nasdaq Composite increased 0.9%. Analysts note that the broader market is showing resilience despite mixed signals from tech and commodities.

More than 100 S&P 500 companies are expected to report earnings this week. Strong growth is predicted, even as some high-profile sell-offs continue to make headlines.

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U.S. dollar weakens while Australian dollar rises amid global market shifts

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US dollar weakens as Trump comments; Australian dollar gains from commodity prices and RBA rate hike expectations


The US dollar is coming under pressure as the economy remains strong and President Trump comments on its decline. We explore how this is impacting major currencies around the world and what it means for investors.

Meanwhile, the Australian dollar is benefiting from rising commodity prices and growing expectations of an RBA rate hike. Global investors are increasingly drawn to Australia’s bond market as economic conditions shift.

Currency trading strategies are adapting to this changing landscape, with potential implications for interest rates and international markets. Steve Gopalan from SkandaFX breaks down the trends.

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Wall Street slides as AI spending raises investor concerns

Wall Street dips as AI spending scrutiny rises; Microsoft struggles while Meta thrives. Tune in for insights!

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Wall Street dips as AI spending scrutiny rises; Microsoft struggles while Meta thrives.


Wall Street closed lower on Thursday, with the Nasdaq leading losses as investors questioned whether Big Tech’s massive AI spending will pay off. Microsoft shares tumbled after revealing record AI infrastructure costs, while Meta rallied on strong earnings and a bullish outlook.

Kyle Rodda from Capital.com joins us to explain what spooked markets, which tech names are holding up, and whether AI budgets are getting too big.

We also discuss rate expectations, macro risks, and what to watch in the upcoming earnings season.

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