In the lead-up to a major Federal Reserve decision, markets often display volatile behavior designed to shake out weak hands. Yesterday, Gold futures gave us a textbook example of this phenomenon around the psychological $4,200 level.Gold technical analysis: Were the bears just trapped? Seems so!In today's gold technical analysis video, I take a close look at the Gold futures 1-Hour chart, focusing on the price action since the contract rollover on November 26, 2025. What we see is a classic consolidation phase that resolved in a deceptive move, trapping bears before bulls regained the upper hand.The Setup: A Textbook "Shakeout" at $4,200Following the contract rollover, gold entered a period of consolidation. Yesterday, this range was broken with a sharp, temporary drop below the significant $4,200 round number.This move pushed price to a low of $4,197.80. Crucially, this level was near the previous lows from December 2nd and December 4th, an area rich with stop-loss orders from traders who were long. This action bears all the hallmarks of a "stop hunt" or "shakeout"—a move designed to trigger sell orders to provide liquidity for larger players to buy.The Reversal: Bulls Reclaim the Value AreaAs I demonstrate in the video below, the bearish breakdown was short-lived. Bulls stepped in aggressively, buying the dip and driving the price back up.The key confirmation came when price crossed back above the $4,214 level, reclaiming the previous consolidation's Value Area. This decisive move signaled that the brief dip below $4,200 was likely a trap and that control had shifted back to the buyers. The rally even extended to test the Volume Profile's Point of Control (POC), further cementing the bullish stance.Watch the full 1-Hour chart breakdown and identify the key levels in the video above.The Macro Catalyst: FOMC and the Path for 2026This technical recovery is happening against the backdrop of a critical Federal Reserve meeting tomorrow, Wednesday. The market consensus is currently leaning towards a quarter-point rate cut.Traders are looking beyond just this week's decision. The market is eager for guidance on the Fed's dot plot and economic projections for the end of 2026. Any changes in wording regarding the pace of future easing—or hints about who might succeed Jerome Powell as Fed Chair, with Kevin Hassett being a leading candidate—could trigger significant volatility.These factors will determine the broader "risk-on" or "risk-off" sentiment, which will likely dictate the next major directional move for gold.Key Takeaways & Next StepsThe $4,200 zone held: The fake-out below this level has created a strong foundation of support.Bulls are in control: Reclaiming the $4,214 value area invalidates the immediate bearish case.Fed is the trigger: Expect chopped price action until the FOMC statement releases tomorrow.For more in-depth technical analysis and additional perspectives on stocks, commodities, and crypto, be sure to return to investingLive.com.For real-time trade ideas and community discussion, join our free Telegram channel: investingLive Stocks.Disclaimer: This article is for informational purposes only and does not constitute financial advice. Trading futures and commodities involves substantial risk of loss and is not suitable for all investors. This article was written by Itai Levitan at investinglive.com.

Trump: May make tariff changes to lower some pricesUS November NFIB small business optimism index 99.0 vs 98.3 expectedChina set to limit access to Nvidia's H200 chips - FTECB's Nagel: AI offers tools to process vast datasets and can improve predictive accuracyThe JPY is free-falling again despite incoming BoJ rate hike and constant jawboningBoJ Governor Ueda: Believe the economy will go back to positive growth in Q4 and beyondGermany October trade balance €16.9 billion vs €15.6 billion expectedFX option expiries for 9 December 10am New York cutJapan PM Takaichi: Specifics of monetary policy up to BoJBoJ Governor Ueda: Certainty of BoJ's outlook materialising is increasing graduallyWhat are the main events for today?Japan PM Takaichi: Will take appropriate actions on FX if necessaryinvestingLive Asia-pacific market news wrap: RBA introduces a clear hawkish biasRBA's Bullock: If data suggests inflation not slowing, that will be considered in FebruaryThe most notable mover in the session was the Japanese Yen. The JPY continues to weaken across the board despite the incoming BoJ rate hike and constant jawboning from Japanese officials. Part of the problem could be that the BoJ waited far too long and it's now looking to deliver a cautious rate hike right when other major central banks are shifting to a hawkish stance.The market has also already priced in a rate hike this month and at very least another in 2026, so it's hard to see the BoJ outhawking the market pricing, leaving limited room for JPY appreciation on a hawkish repricing.We also got a report from Financial Times saying that Chinese regulators have been discussing ways to permit limited access to H200 chips. No final decision had been made yet though. For context, Trump yesterday announced that the US will allow Nvidia to sell H200 chips to China.US equity indices weakned a bit on the headline but recovered quickly as this news isn't new. In fact, China has been implementing restrictions on foreign AI chips like Nvidia, AMD and so on in state-funded data centers to boost domestic tech as they compete with the US.Lastly, Politico published an interview with Trump in which he said that he may consider changes to tariffs to lower prices. He also said that the willingness to lower interest rates would be a litmus test in the choice of a new Fed chair. Lowering tariffs further would be certainly bullish for the global economy but at this point it could also stoke inflation given that central banks responded to the negative shock from tariffs with lower interest rates. Therefore, it might be bullish in the short-term but if things get hot, central banks will be forced to tighten again, and that would be negative for risk assets. This article was written by Giuseppe Dellamotta at investinglive.com.

Artificial intelligence that sharpens your decision-making in the marketsFinancial service providers have been using algorithmic trading and automation tools for decades. Artificial intelligence (AI), with its capability to process large amounts of data and provide actionable insights, is likely to take trading to a whole new level. Although generative AI and LLMs are gaining attention, their use in real-world trading remains limited. Entering the arena in 2017, they rapidly permeated the trading space. According to the IMF, the share of AI content in trading technology patent applications versus algorithmic trading jumped from 19% in 2017 to over 50% in 2020. Further data shows that this percentage will likely continue to rise year-over-year beyond 2025. As innovation unfolds, market participants are also beginning to acknowledge the potential of AI applications to rebalance portfolios, increase liquidity, and change market structure in the long term. OneRoyal, a leader in the derivatives trading space, has announced the launch of AI trading tools. The initiative is not “fuelled by hype, but rather the result of consistent market research, and it reflects the high standards we set across every aspect of our business”, CMO Dominic Poynter highlighted.“The integration of AI tools is a strategic enhancement to our platform, and it underscores the company’s commitment to innovation, transparency, and superior client service,” Poynter continued.This is a significant upgrade and marks the materialisation of a strategic tech partnership between OneRoyal and leading technology provider Acuity Trading. By increasing the availability of AI trading tools, the broker positions itself at the forefront of the AI-led trading transformation. But what does this mean for traders? From trade automation to data-driven insights to reduce emotional bias, traders can unlock a host of exclusive features and advantages.The Latest in AI Trading ToolsTo further support traders’ decisions and strategies, OneRoyal’s upgraded platform integrates a range of AI-powered solutions, enabling high-efficiency, objective investment in global markets:SignalXTraders can improve decision-making by accessing real-time AI analytics to gain deeper insights into market trends and patterns. This solution features the ability to back-test trading strategies and customise market intelligence to individual styles and risk tolerances. Algorithmic signals expand traders’ data sources and minimise the chance of making emotional decisions.AssetIQThis centralised portfolio management system is a single, integrated platform for overseeing assets across a wide range of financial instruments. Featuring real-time updates, algorithmic signals, and analytics all in one place, AssetIQ improves decision-making and risk management with controls over trading parameters and alerts. Improved efficiency and more confident decisions are just two of the advantages it boasts, along with the ability to scale portfolio sizes from small to large. Action NewsThis features unique, AI-driven financial news insights, helping reveal new and alternative trading opportunities by analysing updates from a variety of sources, including articles, social media, and market-moving events. Action News predicts potential market movements based on news data and streamlines research so that traders spend less time going through hundreds of news pieces. In this way, it increases trading efficiency through informed decisions and data-driven choices. The CalendarPacked with a wide range of economic indicators, custom alerts, and historical data, the Calendar enhances timeliness, helping traders optimise their schedule. Its user-friendly interface and sophisticated AI system ensure improved planning with vital real-time updates on economic events. Market ScannerThe constant stream of market opportunities can make it difficult to decide on the best way forward. Market Scanner empowers traders to identify opportunities with key features such as:Data visualisation showing the impact of market-moving events on price chartsSummarising thousands of assets Highlighting key dataNews from trusted sourcesOpportunity snapshotsInsights on major eventsDaily IntelAn exclusive service, Daily Intel is delivered directly into client email inboxes. It features powerful information such as real-time market analysis, interactive charts and data, and expert insights on market trends. Combined, these daily updates can help enhance trading decisions. OneRoyal’s suite of AI tools is seamlessly integrated, enabling traders to connect their workflows and maximise efficiency across all aspects of their trading operations.Discover OneRoyalOneRoyal’s new website and expanding AI toolset demonstrate the company’s ongoing commitment to trustworthiness and technological adaptability. As a multi-licensed and experienced financial services provider since 2006, the company offers security, a wide range of instruments, and high-speed trading capabilities, all backed by expert support and a range of educational resources.With these enhancements, OneRoyal continues to evolve, empowering global traders in their goals to achieve better investment outcomes. This article was written by IL Contributors at investinglive.com.

Most investors already know: you don’t have to bet your whole life savings on Bitcoin. But you might consider giving it a small corner in your portfolio because it behaves differently from most traditional assets.Bitcoin has evolved into something more than speculative hype. As more institutions adopt it, its role in mainstream finance is no longer fringe. That means it could provide benefits when mixed carefully with stocks, bonds, or other investments.When we talk about Bitcoin price in this context, it's more than its headline-grabbing swings. The value of the coin is volatile but its lack of perfect correlation with traditional assets means it doesn’t always rise and fall in unison with stocks or bonds. That volatility is precisely what can make it useful for diversification.The Case for Adding BitcoinDiversificationOne of the strongest arguments for including Bitcoin is diversification: its price movements aren’t tightly linked to equities or bonds. Research from Fidelity, for example, finds that over a recent three-year period, Bitcoin’s correlation with stocks was about 0.53 and with bonds only 0.26. That means it doesn’t move in perfect lockstep with other assets. There’s room for it to add something new to the mix.Academic work supports this too. In a study published in the Review of Quantitative Finance and Accounting, researchers showed that portfolios that include cryptocurrency “factor” strategies can provide significant out-of-sample diversification benefits. That’s not vague financial rhetoric; it’s data-driven.Another piece of research — from MDPI — examined alternative-investment fund portfolios (things like venture capital or hedge fund indices) and found that Bitcoin has low correlation with those too. So, it’s not just about stocks and bonds: Bitcoin could diversify less traditional parts of a portfolio, too.Return Potential vs Risk: A Delicate BalanceOf course, Bitcoin carries big risks. Its volatility is well known. But several portfolio-optimization studies find that even a small stretch of exposure — say 1–5% — can potentially enhance returns without blowing up your risk profile.One strong example is from 21Shares, who ran simulations with a 60/40 (stocks/bonds) “growth” portfolio. When they added 5% Bitcoin, they saw annualised returns improve significantly (from around 7.5 % to 9.5–10 %), while the Sharpe ratio (a measure of risk-adjusted return) also went up. They tried different rebalancing intervals (daily, monthly, quarterly, etc.) and found that quarterly rebalancing seemed to strike a particularly good balance between managing volatility and valorising returns.Academic portfolio-optimization models reinforce that point. For instance, some found low long-term correlation between Bitcoin and traditional instruments. They argue that this gives Bitcoin potential merit as a diversifier. That being said, they caution that heavy exposure can dramatically increase risk.Risks (Yes, There Are Plenty)You wouldn’t make a portfolio recommendation without a big flashing warning sign, and Bitcoin deserves one.Volatility: Bitcoin’s price can swing wildly in short periods. Even if you keep the allocation small, it may amplify risk. Only proceed if you're OK with big short-term ups and downs.Liquidity risk: While major exchanges are liquid, some less regulated corners of the crypto world can have liquidity issues.Regulatory uncertainty: Bitcoin’s regulatory treatment varies globally, thus legal risks can’t be ignored.Correlation may change: As institutional adoption grows, Bitcoin’s correlation with equities could evolve. In fact, a recent study shows rolling-window correlations with equity indices peaked at some points. How Much Should You AllocateGiven the risks, most sensible frameworks recommend only a small allocation to Bitcoin. Here’s some practical advice:Start small. Research and analysis generally support a modest allocation — many studies run simulations with 1–5% in Bitcoin.Rebalance regularly. As 21Shares’ research shows, how often you rebalance (bring your portfolio back to target) matters. Quarterly rebalancing often delivers a good trade-off between risk and return.Use a long-term mindset. Think of Bitcoin as a long-term diversification tool, not a day-trading bet.Be prepared for volatility. Accept that Bitcoin can swing hard. If that gives you sleepless nights, reduce your allocation.Consider risk governance. Make sure this allocation fits within your broader risk tolerance and long-term goals. Don’t just throw money in because everyone’s talking about Bitcoin.Why It Might Matter NowInstitutional adoption is shifting Bitcoin’s role from “wild west speculation” toward something closer to a legitimate financial instrument. As more institutions treat crypto seriously, Bitcoin might become more stable, more correlated, or more embedded — meaning its portfolio role could change.At the same time, research like the Financial Innovation paper shows that risk spillovers and diversification benefits are portfolio-specific and timescale-dependent. In other words, Bitcoin isn’t a magic bullet, but it can be a clever supplement, especially for investors who understand its quirks.Bitcoin doesn’t need to be a moonshot to justify its spot in your portfolio. With a small, carefully managed allocation, it can work as a diversifier. Empirical studies back that up. Fidelity-style correlations show it doesn’t perfectly mirror stocks or bonds, and portfolio simulations consistently show risk-adjusted returns improving even with a tiny slice of BTC. This article was written by IL Contributors at investinglive.com.

Would make support for immediately slashing interest rates as a litmus test in the choice of a new Fed chair (well, duh)Ukrain hasn't had an election in a long timeNo question Russia has a stronger positionOn Ukraine: Europe is not handling it wellTrump declined to rule out troops in VenezuelaCould extend anti-drug military operations to Mexico and ColombiaFull interview hereLowering tariffs further would certainly be bullish for the global economy but at this point it could also stoke inflation given that central banks responded to the negative shock from tariffs with lower interest rates. Therefore, it might be bullish in the short-term but if things get hot, central banks will be forced to tighten again, and that would be negative for risk assets. This article was written by Giuseppe Dellamotta at investinglive.com.

Prior 98.2Full report hereAn increase in those expecting real sales to be higher contributed most to the rise in the Optimism Index. The Uncertainty Index rose 3 points from October to 91. An increase in owners reporting uncertainty about capital expenditure plans over the next three to six months was the primary driver of the rise in the Uncertainty Index.NFIB Chief Economist Bill Dunkelberg said: "Although optimism increased, small business owners are still frustrated by the lack of qualified workers. Despite this, more firms still plan to create new jobs in the near future.” This article was written by Giuseppe Dellamotta at investinglive.com.

The Financial Times reports that Chinese regulators have been discussing ways to permit limited access to H200 chips. No final decision had been made yet.For context, Trump yesterday announced that the US will allow Nvidia to sell H200 chips to China. I don't see this as something new as China has been implementing restrictions on foreign AI chips like Nvidia, AMD and so on in state-funded data centers to boost domestic tech as they compete with the US.Full FT article here This article was written by Giuseppe Dellamotta at investinglive.com.

AI offers tools to process vast datasets. These can help, among other things, detect previously unseen patterns and improve predictive accuracyMachine learning could identify inflationary pressures, labor-market shifts or structural breaks in the economy fasterThe technology would not substitute for human expertiseFor more hereNagel didn't touch on monetary policy, but he highlighted how AI could help central banks identify problems in the economy faster and therefore improve policymaking. Much like technology helped improving inventory management for companies and smooth the inventory cycles. There's lots of fear-mongering going on about AI replacing humans, but I've been personally seeing it just as a new tool to improve productivity. Technology has always changed our lives and the labour market, but it didn't lead to high unemployment. People were fearing machines taking their jobs (see the Luddites) but eventually it just created new jobs. Things change and we keep on adapting. This article was written by Giuseppe Dellamotta at investinglive.com.

We are seeing the JPY free-falling again across the board today. The Japanese long-term yields continue to hit record highs and that is of course drawing attention from Japanese officials as borrowing costs rise. Governor Ueda this morning noted that long-term rates have been rising rather rapidly recently and added that the BoJ would increase JGB purchases in case long-term yields make abrupt moves. The last comment is not exactly bullish for the JPY.Despite the incoming rate hike and constant jawboning from Japanese officials, the JPY remains weak. Part of the problem could be that the BoJ waited far too long and it's now looking to deliver a cautious rate hike right when other major central banks are shifting to a hawkish stance.The market has also already priced in a rate hike this month and at very least another in 2026, so it's hard to see the BoJ outhawking the market pricing, leaving limited room for JPY appreciation on a hawkish repricing.As I see it, the JPY is now more at the mercy of other major central banks' stances. For example, if things go south with the US data or a potentially hawkish Fed triggers a risk-off wave, then we could see the JPY gaining some ground as the market will price in more rate cuts further down the curve for the Fed.Watch out also for Japanese officials stepping up their jawboning with final warnings or even rate checks. This article was written by Giuseppe Dellamotta at investinglive.com.

Eurostoxx +0.11%Germany DAX +0.21%France CAC 40 +0.13%UK FTSE -0.08%Spain IBEX +0.14%Italy FTSE MIB +0.01%Yesterday's losses were eventually pared as markets recovered after some brief weakness. What might keep a lid on gains is the risk of a hawkish Fed's decision tomorrow. This article was written by Giuseppe Dellamotta at investinglive.com.

Prior €15.3 billionExports +0.1% vs -0.5% expectedPrior +1.4%Imports -1.2% vs -0.5% expectedPrior +3.1%Full report hereThe German trade surplus expanded in October as exports rose by 0.1% on the month while imports fell by 1.2%. This is not market-moving data and won't change anything for the ECB. This article was written by Giuseppe Dellamotta at investinglive.com.

EUR/USD1.1760 (EUR 1.62 bn)1.1600 (EUR 1.20 bn)1.1500 (EUR 1.21 bn)USD/JPY157.00 (US$ 325.47 mn)155.50 (US$ 319.96 mn)GBP/USD1.3400 (GBP 291.94 mn)1.3250 (GBP 209.81 mn)USD/CHF0.8040 (US$ 249.85 mn)USD/CAD1.3950 (US$ 633.00 mn)AUD/USD0.6635 (AUD 949.50 mn)0.6500 (AUD 524.35 mn)NZD/USD0.5775 (NZD 148.91 mn)EUR/GBP0.8790 (EUR 329.71 mn)Justin prepared a weekly overview before leaving for the holidays here. For more information on how to use this data, you may refer to this post here. This article was written by Giuseppe Dellamotta at investinglive.com.

Won't comment on talks with UedaBoJ needs to communicate with the government, but specifics of monetary policy should be left with BoJExpects BoJ to carry out appropriate monetary policies to achieve its price targetGovernment bears ultimate responsibility for macroeconomic policyI feel like she wants to calm the markets by stressing that BoJ is independent in setting monetary policy. This article was written by Giuseppe Dellamotta at investinglive.com.

Won't comment on specifics on interest ratesLong-term rates are rising rather rapidly recentlyWill increase JGB purchases if long-term rates make abrupt movesWill pay close attention to market movesReal interest rates are significantly lowWill adjust degree of monetary easing if economic, prices trends move in line with forecastsGathering information on companies' stance on wages for next yearLabour market is tightening, increasing upward pressure on wages and pricesBy adjusting degree of monetary policy, we can ensure stability of financial markets and realise price stabilityThere's really nothing new here from Ueda. The market already knows the BoJ is going to hike at the upcoming meeting with the probabilities now standing around 76%. This makes it a done deal because they certainly won't want to deliver a dovish surprise by keeping rates steady. In 2026, the market is fully pricing in another 25 bps hike. This article was written by Giuseppe Dellamotta at investinglive.com.

In the European session, we don't have anything on the agenda other than the German trade balance report. Goes without saying that the data won't matter at all for the market or the ECB. In the American session, the highlights include the weekly ADP data and the US Job Openings report. We had three negative weekly ADP releases recently which culminated with a soft monthly report last week. The ADP data suggests that labour market conditions are yet to change and the cooling is still underway. We will also get the October US Job Openings report. The consensus sees further cooling to 7.150M vs 7.227M prior. The Job Openings is a two-month old data but it will give us a bit more information on the labour market conditions in October. At this point, I would focus more on the Fed's forward guidance tomorrow and the NFP/CPI reports next week. These will be the most important events and potentially the most market-moving ones. Central bank speakers:08:00 GMT/03:00 ET - ECB's Nagel (neutral - voter)09:00 GMT/04:00 ET - BoJ Governor Ueda (neutral - voter)14:15 GMT/09:15 ET - BoE's Members at Treasury Select Committee19:10 GMT/14:10 ET - RBNZ Governor Breman This article was written by Giuseppe Dellamotta at investinglive.com.

Will make appropriate economic, fiscal decisions at appropriate timing while taking into account interest rates, FX and pricesWatching market moves closelyImportant for currencies to move in stable manner reflecting fundamentalsDifficult to single out impact of fiscal policy on interest rates, FX as they are determined by various factorsFeels like Japanese officials are really getting worried about the JPY weakness despite the incoming BoJ rate hike. I think part of the problem is that they've waited for too long and are now considering rate hikes right when the others are shifting to a hawkish stance too. This article was written by Giuseppe Dellamotta at investinglive.com.

RBA decision: Case rate set at 3.60% vs 3.60% expectedRBA's Bullock: Discussed circumstances in which we might have to tightenFull text of the RBA decision on Dec 9, 2025Australian November NAB business conditions +7 vs +9 priorUK BRC November retail sales +1.2% y/y vs +1.5% priorTrump threatens Mexico tariffs due water treaty violationsMarkets:Gold flatWTI crude oil down 21-cents to $58.67US 10-year yields up 0.4 bps to 4.17%S&P 500 futures up 0.1%Nikkei up 0.2%AUD leads, CHF lagsThe RBA decision was the main event of the day and it put some life into the FX market. The kneejerk was lower in AUD/USD but only for a minute as it quickly rebounded to 0.6625. The market was perhaps looking for more of a hawkish signal that wasn't there in the statement but it certainly appeared with Bullock, who said the board envisioned staying on a long pause or hiking and that cuts weren't envisioned. She also singled out the upcoming meeting in February as one where they will be looking carefully at inflation data, though the market still only sees a 25% chance of a hike.Further out, we now have nearly 2 rate hikes priced in for 2026 and that's led to a climb in AUD/USD to 0.6640, about 20 pips above the levels before she spoke.Elsewhere, we are seeing some USD/JPY strength kick in as the pair trips stops above 156.00 and touches the best levels since Dec 2. Notably, that Dec high of of 156.18 is in range and Treasury yields are higher again.Aside from that, the ranges have been tight in FX and global equities. Gold perked up earlier but couldn't get through $4200 and has now slipped to $4185. This article was written by Adam Button at investinglive.com.

If data suggests inflation not slowing, that will be considered at February board meetingBoard wants to give signal that risks have tilted to the upsideThe RBA has officially turned hawkish today and opened the door for rate hikes. That is of course conditional to the data with Governor Bullock stressing the January quarterly inflation report.Reading between the lines, it feels like they could deliver a rate hike at the February meeting already if inflation surprises to the upside again. Of course, the bigger the surprise the stronger the chances for an earlier rate hike. This article was written by Giuseppe Dellamotta at investinglive.com.

Did not explicitly consider case for a rate hike this meetingDiscussed circumstances in which we might have to tightenDid discuss what they might have to do if rates need to go upNeed to be cautious on monthly CPI series as yetInflation and jobs data will be important for February meeting Would not put timing on any future move, will be meeting by meetingWe will be looking at quarterly inflation numbersIf inflation looks to be persistent, it will raise some questions for policyIt looks like more rate cuts are not neededBoard does not think the downside risks have abated, upside risks are greaterThe February meeting is the next one as the RBA goes on summer holiday. Needless to say the upcoming data will be critical.AUD/USD jumped on her comments.More:RBA will not react to one economic numberOutlook is for an extended pause or rate hikes, would not put a probability on itRate cuts are not on the horizonLooking for clues in underlying inflation on whether pick up was temporaryThe board is uncomfortable with where inflation isIf data shows that inflation is not slowing, that will be considered at the February RBA meetingShe is certainly putting February in play but the market sees this as a scenario where February is where she would hint at a hike for the March meeting. That second meeting is now 45% priced for a hike. This article was written by Adam Button at investinglive.com.

The statement was out earlier and Bullock will speak soon:At its meeting today, the Board decided to leave the cash rate unchanged at 3.60 per cent.While inflation has fallen substantially since its peak in 2022, it has picked up more recently. The Board’s judgement is that some of the recent increase in underlying inflation was due to temporary factors and there is uncertainty about how much signal to take from the monthly CPI data given it is a new data series. Nevertheless, the data do suggest some signs of a more broadly based pick-up in inflation, part of which may be persistent and will bear close monitoring.Economic activity continues to recover. Growth in private demand has strengthened, driven by both consumption and investment. Activity and prices in the housing market are also continuing to pick up. Financial conditions have eased since the beginning of the year, credit is readily available to both households and businesses and the effects of earlier interest rate reductions are yet to flow through fully to demand, prices and wages. On the other hand, money market interest rates and government bond yields have risen more recently.Various indicators suggest that labour market conditions remain a little tight. The unemployment rate has risen gradually over the past year and employment growth has slowed. However, measures of labour underutilisation remain at low rates, surveyed measures of capacity utilisation are above their long-run average and business surveys and liaison continue to suggest that a significant share of firms are experiencing difficulty sourcing labour. Wages growth, as measured by the Wage Price Index, has eased from its peak but broader measures of wages continue to show strong growth and growth in unit labour costs remains high.There are uncertainties about the outlook for domestic economic activity and inflation and the extent to which monetary policy remains restrictive. On the domestic side, the pick-up in momentum has been stronger than anticipated, particularly in the private sector. If this continues, it is likely to add to capacity pressures. Uncertainty in the global economy remains significant but so far there has been minimal impact on overall growth and trade in Australia’s major trading partners.DecisionThe recent data suggest the risks to inflation have tilted to the upside, but it will take a little longer to assess the persistence of inflationary pressures. Private demand is recovering. Labour market conditions still appear a little tight but further modest easing is expected. The Board therefore judged that it was appropriate to remain cautious, updating its view of the outlook as the data evolve.The Board will be attentive to the data and the evolving assessment of the outlook and risks to guide its decisions. In doing so, it will pay close attention to developments in the global economy and financial markets, trends in domestic demand, and the outlook for inflation and the labour market. The Board is focused on its mandate to deliver price stability and full employment and will do what it considers necessary to achieve that outcome.Today’s policy decision was unanimous. This article was written by Adam Button at investinglive.com.