Another rate rise by the RBA on Melbourne Cup Day which took the cash rate target to 4.35% saw the Australian dollar and bond yields tumble. Investors were wrong-footed by the RBA’s softer-than-expected stance, as it signalled that while it would be willing to hike further if required, it is reluctant to do so unless absolutely necessary.

Powerful forces are converging in the Australian economy at the moment, as inflation data from September that came in hotter than expected pretty much sealed the fate of the RBA’s decision to hike rates yesterday. The central bank was even facing calls from the IMF to hike rates, as Australia’s monetary policy still remains significantly lower than most other world economies – many of which have tipped over the 5% mark.

Housing is a central issue in the country’s interest rate decisions, as 15% of households are already failing to cover their mortgage repayments with their income. House prices are still proving to be remarkably resilient, with Corelogic’s five capital city aggregate index booking 2.7% of quarter-on-quarter gains, taking it to a 7.6% year-on-year increase.

China has made further moves to increase regulations around rare earth export restrictions, placing the critical minerals onto a list of commodities whose imports and exports should be strictly recorded for statistical record keeping.

Metallurgical test works results from a few different rare earths explorers on the ASX rolled in this week. Alvo Minerals (ASX: ALV) and OD6 Metals (ASX: OD6) both reported what appear to be encouraging results.

OD6 announced that their met work that was completed by the Australian Nuclear Science Organisation (ANSTO) confirms low acid consumption at their Splinter Rock project.

ALV released a series of recoveries for their Brazilian ionic clay rare earths project that averaged 56% and reached up to 83% for the combined group of NdPr, Dy and Tb.

The XJO was largely flat this week and is today trading around just above 6,990. It is still well above both its 52 week low of 6,751 and has so far today managed to hold above its 13 week low of 6,751. Having said this, the index still sits noticeably lower than its 200 day weighted moving average of 7,174, but is slightly higher than its 50 day weighted moving average of 6,974, while being far off its 52 week high of just over 7,567.

We are hosting a three-part Rare Earths Summit, where a panel of fund managers, analysts and industry insiders will discuss their views on what drives the price of rare earths, how they identify potential opportunities and what they are investing in.

Join us for part one tomorrow, Thursday 9th November at 12pm (AEDT), where we will be joined by Dylan Kelly, Head Analyst at Terra Capital; John Forwood, CIO at Lowell Resources; and Graham Howard, geologist and Non-Executive Director at VP Minerals. Click here to book in or request the replay.

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