RBA may have a few more hikes up its sleeve to deliver – TDS

Eren Sengezer FXStreet

Analysts at TD Securities note that the Reserve Bank of Australia (RBA) surprised the market by raising its policy rate by 25 basis points to 3.85%.

Will assess RBA call following the SoMP on Friday

"We expected the Bank to remain on hold at 3.60% after last week's Q1 CPI release revealed inflation fell by more than the RBA expected."

"The preliminary forecasts provided in today's Statement on balance do not appear significantly different from the February Statement of Monetary Policy (SoMP) forecasts and on balance supported the Bank remaining on hold in our view."

"While the minutes of the April meeting were hawkish and read as more supportive of a hike than a pause at that meeting, today's Statement suggests the Bank may have a few more hikes up its sleeve to deliver. We will assess our RBA call following the SoMP on Friday and potentially after the 9th May Federal Budget."

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD ticks higher to near 1.1800 ahead of flash German inflation data

The EUR/USD pair trades marginally higher to near 1.1810 in the late Asian trading session on Friday, ahead of the release of preliminary inflation data for February from Germany and its major states during the day.

GBP/USD struggles to lure buyers amid UK political drama, BoE easing bias

The GBP/USD pair struggles to build on the overnight modest bounce from the 1.3445 area, or the weekly low, and oscillates in a narrow band during the Asian session on Friday. Spot prices currently trade just below the 1.3500 psychological mark, nearly unchanged for the day, and seem vulnerable to slide further.

Gold awaits acceptance above $5,200 and US PPI data

Gold consolidates previous rebound near $5,200 amid risk-off markets, awaiting US PPI release. The US Dollar eyes a flattish weekly close as dovish Fed outlook and tariff woes outweigh geopolitical risks. Gold yearns for acceptance above $5,200 to resume the uptrend, with a bullish RSI in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.