Many economists were caught off guard by last week’s July RBA decision to hold the cash rate steady at 3.85%, “calling the move out of touch with the market”.
However, the Reserve Bank of Australia hinted at an “easing cycle” ahead for millions of borrowers.
Governor Michele Bullock stressed the importance of July’s inflation data, saying, “Provided we are still on top of inflation, which we intend to be, and get confirmation, then yes, an easing cycle is coming.”
She added that a full quarterly CPI would confirm inflation’s path toward the middle of the target band.
The mid-winter slowdown hasn’t stopped Australia’s property market from remaining strong, with rising values, tight rentals, easing inflation, and solid auction clearances boosting confidence.
Bitcoin continues to soar, hitting a new all-time high of US$118,848 (at writing), driven by institutional demand and crypto-friendly US policies under President Trump.
Ether (ETH/USD), the world’s second-largest cryptocurrency, surged nearly 5% to $3,038.89, a five-month high.
Meanwhile, spot gold saw limited safe-haven demand early in the week, but bargain hunters are returning amid uncertainty over US tariffs and interest rates, boosting demand alongside the US dollar.
June’s FOMC minutes revealed most policymakers favour potential rate cuts, but timing remains unclear due to inflation concerns linked to Trump’s tariffs.
Fed Chair Powell highlighted tariff uncertainty as the main barrier to cuts, despite President Trump’s push for immediate cuts and calls for Powell’s resignation.
The Fed unanimously held rates steady at 4.25%–4.50%, unchanged since December.
Spot gold also faced pressure from easing safe-haven demand amid cooling Middle East tensions in late June.
Daily Chart Bitcoin / USD
