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RBA's third 2026 rate hike amid stagflation puts Australian ETFs like EWA in focus as investors seek resilient, diversified exposure.
Australian ETFs like EWA draw focus as energy shocks and RBA rate hikes fuel inflation fears.
Invesco CurrencyShares Australian Dollar Trust (NYSEARCA:FXA - Get Free Report) shares passed above its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $65.73 and traded as high as $70.06. Invesco CurrencyShares Australian Dollar Trust shares last traded at $69.74, with a volume of 26,444 shares changing hands.
Bank of Montreal Can acquired a new position in shares of Invesco CurrencyShares Australian Dollar Trust (NYSEARCA:FXA) during the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 5,654 shares of the exchange traded fund's stock, valued at approximately $369,000. Bank of Montreal
Weaker GDP growth in Australia may indicate that the Reserve Bank of Australia (RBA) is done hiking rates. Trade data suggests that the GDP growth figure for Q3 2023 will not meet expectations.
Australian Consumer Price Index (CPI) surprises with higher-than-expected inflation, potentially leading to a restart of the Reserve Bank of Australia's hiking cycle. RBA projections for inflation may need to be revised as GDP and labor market data remain strong, putting pressure on the central bank to deliver another rate hike.
While this is mostly down to less helpful base effects, international energy prices and excise duty hikes, it is not safe to conclude that the RBA rate cycle has peaked. At 5.2% YoY, the August inflation figures were bang in line with expectations.
Marc Chandler and James Foord discuss international markets, economies and currencies. Has the Fed conquered inflation?
SEC filings for FXA aren't indexed yet — common for recently launched funds. Browse the issuer's filings on SEC EDGAR directly.