The RBA cut its rate to 3.6%. Bitcoin is striving for historical highs

The Dow Jones (US30) Index fell by 0.45% on Monday. The S&P 500 (US500) declined by 0.25%. The tech-heavy Nasdaq (US100) closed down by 0.30%. Investors are anticipating July CPI data on Tuesday and PPI data on Thursday, which are key inputs for the Fed’s September rate decision, with markets pricing in a high probability of a rate cut. Trade tensions persist as President Trump extended the 90-day pause on tariffs on Chinese goods and confirmed a deal that requires Nvidia and AMD to pay the US 15% of the revenue from sales of certain AI chips to China. He also clarified that gold imports would not be subject to tariffs, which eased concerns about Swiss bullion.

On Monday, Bitcoin’s price rose by more than 2% to reach $122,000, nearing new historical highs after a four-week consolidation. This was fueled by bullish news from Washington. Analysts highlighted reports of a potential executive order from US President Donald Trump that would allow digital assets investments in 401(k) retirement plans, which could open up access to as much as $9 trillion in funds for digital assets markets. Further boosting the rally were significant inflows into ETFs and increased Bitcoin purchases by treasury-funded companies.

European stock markets traded with mixed performance yesterday. The German DAX (DE40) fell by 0.34%, the French CAC 40 (FR40) closed down by 0.57%, the Spanish IBEX35 (ES35) rose by 0.21%, and the British FTSE 100 (UK100) closed up by 0.37%. Investor focus remains on trade and geopolitical developments ahead of a highly anticipated meeting between President Trump and Russian President Vladimir Putin, scheduled for Friday. This will be their first summit since 2019 and is expected to cover a potential settlement to the war in Ukraine, possibly involving territorial concessions. Meanwhile, investors are awaiting US inflation data and a possible extension of the tariff truce between Washington and Beijing.

Norway’s annual consumer inflation rate rose to 3.3% in July 2025, the highest reading since February, up from 3.0% in June. The main upward pressure came from food prices. The CPI-ATE (Consumer Price Index adjusted for tax changes and excluding energy) rose by 3.1% year-on-year, matching the June pace and maintaining its fastest growth in the last three periods.

In the oil market, traders are awaiting the monthly OPEC report and expectations from the EIA and IEA to gain new guidance on supply and demand. Oil has fallen by more than 10% this year as OPEC+ restores production faster than planned, rolling back output cuts from 2023, while slowing economic growth dampens the demand outlook.

Asian markets were mostly higher yesterday. Japan’s Nikkei 225 (JP225) rose by 1.85%, China’s FTSE China A50 (CHA50) gained 0.08%, Hong Kong’s Hang Seng (HK50) was up 0.19%, and Australia’s ASX 200 (AU200) posted a positive result of 0.43%.

On Tuesday, China announced it would suspend the imposition of additional tariffs on US goods for another 90 days after President Donald Trump’s executive order extended the tariff truce. The Ministry of Commerce stated that tariffs on some US goods would remain at 10% and that China would also work to address non-tariff barriers affecting American goods. The extension of the truce is seen as a step to prevent a new escalation of the trade dispute as both countries aim to ease trade tensions and create space for further negotiations.

At its August meeting, the Reserve Bank of Australia (RBA) cut the cash rate by 25 basis points to 3.6%, which was in line with market expectations and brought borrowing costs to their lowest level since April 2023. The unanimous decision marked a cumulative rate cut of 75 basis points since the beginning of the year, reflecting a sharp slowdown in inflation from its 2022 peak, its return to the 2–3% target range, and a softening labor market. Despite easing cost pressures, the Central Bank remains cautious amid growing uncertainty in domestic and global conditions, including trade policies that could weigh on growth. Policymakers stressed that they would remain data-dependent, monitoring demand, inflation, labor markets, and financial conditions for future decisions.