RBA in no hurry to ease

3 November, 2015

On a relatively tight overnight session on the majors, the Aussie is the standout having risen in the wake of the steady rate decision from the RBA. Surveys of institutions suggested a reasonable risk of an easing, but the RBA kept rates at 2%, with the statement suggesting a slight improvement in the outlook for the economy. The view is that the current accommodative level of rates is appropriate and there were no changes to the comments on the currency. The price action on the Aussie over the past few weeks suggests that it is more comfortable forming a base above the 0.70 level, with only the kiwi having outpaced the Aussie since the previous push below 0.70 on AUDUSD seen at the end of September. Overall, the sense is that the RBA are not in a hurry to cut rates further, indeed if a further cut is seen.

In Europe, there were some better final PMI numbers yesterday to give the euro some marginal support, with a notably stronger print in the UK giving a boost to the pound which proved to be transitory against both the dollar and euro. The focus remains on Thursday’s policy meeting and the reaction of the MPC to some of the softer data of late (yesterday’s PMI aside). Key data releases are few and far between today, leaving FX majors to trade more from levels and sentiment in the wider financial sphere, where the bullish tone to equities seen last month (especially in the US) was further enhanced yesterday, the S&P closing above the 2100 level for the first time since mid-August.


Source link  
CB Monetary Policy Unchanged

Thursday saw the latest Monetary Policy Committee (MPC) report from the Bank of England. The BoE stated that further modest increases...

No Surprises as Fed Raises Rates

The Federal Reserve, as expected, raised its benchmark interest rate by a quarter of a percentage point, to a range of 1.25% to 1.5%. The latest hike...

CB meetings dominate the week

With no impactful economic data releases on the calendar today, the markets are focusing on a plethora of Central Bank meetings scheduled...


No Surprises from BoC & ADP

In an unsurprising move, the Bank of Canada decided to hold its benchmark lending rate at 1%, after two small hikes earlier in 2017. The BoC stated...

Moderate Gains for USD

On Monday, the US Commerce Department released Factory Orders data for October, indicating that the continued strength in the Manufacturing...

OPEC Extends Output Cuts

On Thursday, OPEC (Organization of Petroleum Exporters) and non-OPEC producers led by Russia agreed to keep output cuts until the end of 2018...


US Economy Expands Faster Than Predicted

Data released on Wednesday showed that the US economy expanded at its quickest pace since 2014 in Q3. The US Commerce Department said that...

Political Turmoil in Germany Hurts EUR

The EUR lost ground against many of its peers on Monday on news that Chancellor Angel Merkel’s efforts to form a coalition government had collapsed...

USD Suffers on Subpoena News

The Trump Administration is back in the spotlight with news of a report that Special counsel Robert Mueller’s investigators have issued a subpoena...

  


Share: