Australia's economy has begun to slow down.

The Australian dollar weakened by over 1.52 Australian dollars against the US dollar. This occurred after the Reserve Bank of Australia (RBA) maintained its policy interest rate at 4.35%, in line with market expectations. The RBA observed uncertainties regarding household consumption trends and the labor market. Additionally, corporate profits and account balances have shown signs of slowing down due to consecutive interest rate hikes.

The Reserve Bank of Australia (RBA) held its policy interest rate at 4.35% during its final meeting of the year, following a 25 basis points increase in the previous month. Policymakers aimed to push inflation rates back within the target range of 2-3%. However, higher than expected underlying inflation rates and increased costs of goods and services might prompt the RBA to maintain this elevated interest rate for a longer duration.

Australia experienced a current account deficit of 0.2 billion Australian dollars in the third quarter, following a surplus of 7.8 billion Australian dollars in the previous quarter. This deficit was primarily attributed to significant decreases in prices of key export goods such as consumer goods, coal, and agricultural products, leading to a 1.9% drop in export prices. Additionally, the services surplus decreased significantly by 22.9 billion Australian dollars.

Retail sales in Australia saw a marginal decrease of 0.2% on a monthly basis in October, following a 0.9% increase in the previous month. This decline was due to temporary consumer cutbacks and delayed spending ahead of the major discount event, Black Friday. Consequently, sales across various product categories decreased, leading to a 1.3% decline in company profits for the third quarter, which was a more significant slowdown than the market's anticipated 0.3%.

Job advertisements in Australia dropped by 4.6% on a monthly basis in November, marking the most substantial decline since 2021. This decline indicates a potential easing in the previously tight labor market, influenced by the higher interest rates and reduced labor demand across several companies.

The yield on Australian 10-year government bonds decreased to approximately 4.4%, supported significantly by the Reserve Bank of Australia's maintained policy interest rates and the declining account balances. In comparison, the yield on US government bonds fluctuated around 4.2-4.3%, with investors awaiting Friday's job announcement rates.

Techical analysis data (5H)

Resistance: 1.5224, 1.5239, 1.5260

Support: 1.5189, 1.5169, 1.5154

Source: Investing.com