Tuesday, September 18 – Asia Session Recap
During the Asia-Pacific session, the main event was the RBA’s September 4th Meeting Minutes.
The RBA reiterated that the board agreed that there was no strong case for a near-term rate move. However, the next move is likely to be upwards if the economy proceeds as anticipated.
Furthermore, the RBA noted that AUD’s recent mild decline had supported the economy. Although they added that significant global trade frictions are a material risk to the outlook.
Elsewhere, the US/China trade war remains firmly in focus. According to The Guardian, China says it has no choice but to retaliate against US tariffs and these will occur simultaneously.
These comments are in response to the US confirming tariffs on $200bln of China goods. These tariffs will be at a rate of 10%, increasing to 25% at year-end.
For additional research, we’ve posted news articles from around the web below.
- US wages trade war on China with new $200bn tariffs
- ‘All pain, no gain’: Trump latest round of tariffs is already getting blasted by lawmakers and business groups
- China’s Trade-War Tack Is Steeped in History
- ‘No strong case’ for near-term adjustment in monetary policy: RBA