FX

RBA’s FSR: Expected that output will rebound as the economy gradually reopens

In its semi-annual Financial Stability Report (FSR), the Reserve Bank of Australia (RBA) noted that it “expected that output will rebound as the economy gradually reopens, reducing the risk to the financial system.”

Additional takeaways

Risks to financial stability from borrower payment difficulties have generally eased but remain.

Has been a build-up of systemic risks associated with high and rising household indebtedness.

Important that lending standards are maintained, and that the riskiness of system-wide lending does not increase.

Almost inevitable that at some point the cyber defences of a significant financial institution will be breached.

Market reaction

AUD/USD is testing daily highs at 0.7319 on the RBA’s FSR, as the US debt ceiling optimism is lifting the riskier currencies such as the aussie. The spot is up 0.04% on the day.

Articles You May Like

Yen Stays Weak in Quiet Markets, US CPI to Move the Markets This Week
Dollar Selloff Resumes after PPI Miss
Goldman Sachs sees tactical upside risk for USD/JPY towards 140 in the near-term
Roblox misses on top and bottom, shares dip 12%
USDCAD retest its 100 day moving average. Finds sellers on the test.

Leave a Reply

Your email address will not be published.