HFM information and reviews
HFM
96%
Octa information and reviews
Octa
94%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%

RBA Keeps Official Cash Rate At 1.5%


1 August 2017

Earlier this morning, the Reserve Bank of Australia kept its official cash rate on hold, at 1.5%, as the market had expected. Australia’s headline inflation for the year to date of 1.9% is below the RBA’s target band of 2 to 3%, so any hike in interest rates was always unlikely. More so, export demand may be reduced with recent USD weakening and strengthening commodity prices putting pressure on AUD.

In another showing of the Trump Administrations lack of “continuity” the recently positioned Chief of Staff, John Kelly, fired Trumps recently installed communications director Anthony Scaramucci after just 10 days in the job. Concern abounds from the markets that the US Administration is in turmoil, although Kelly’s appointment may bring ease to the markets as he is regarded as a tough disciplinarian. USD weakness continued Monday with key levels being breached in many financial instruments. There appears to be no immediate respite to USD pressure, although Friday’s NFP may slow further USD declines?

EURUSD rose on Monday to 1.1846; levels not seen since January of 2015. EURUSD has gained nearly 15% since trading around 1.0340 back in early January. Markets are eyeing 1.20 as the next major level if USD weakness continues. EURUSD is currently trading around 1.1820.

USDJPY fell to a 6-week low on Monday of 110.005 and is little changed overnight, currently trading around 110.25.

GBP remains strong against USD and is currently trading just above 1.3200, after hitting an early high on Tuesday of 1.32344.

AUDUSD improved on Monday on the back of improved Chinese data and is little changed following the RBA announcement that kept the official cash rate at 1.5%. Currently, AUDUSD is trading around 0.8010.

Gold remains strong, reaching levels not seen since late 2016. Gold is currently trading around $1,269.5.

Oil maintained its recent gains and may move higher, as the US announced that it was imposing sanctions against Venezuelan President Maduro. Currently, WTI is trading near Tuesday’s high of $50.35pb.

At 10:00 BST Eurostat will release Eurozone Gross Domestic Product (YoY) & (QoQ) for the second quarter. Year on Year consensus is expected at 2.1%, an improvement on Q1’s release of 1.9%. Markets will be looking to see that the Eurozone economy is indeed strengthening, which should mean an easing of monetary policy by the ECB.

At 13:30 BST will see a plethora of data releases from the US: Personal Consumption expenditures. Personal Income & Personal Spending all (MoM) and (YoY). The markets need to see an improvement in all the releases to underline an improving US economy. Spending needs to improve to get an upward move in CPI that will help the Federal Reserve justify any further hikes by year end.

AT 15:00 BST the Institute for Supply Management (ISM) will release Manufacturing PMI (Jul) and Prices Paid. Consensus for both releases are 56.5 and 56 respectively (from 57.8 and 55 respectively previously). As an indicator of Business conditions in the US Manufacturing sector, a slight reduction is expected but a significant drop will see further downward pressure on USD.

Share: Tweet this or Share on Facebook


Related

AUD/USD Dips to a 1-Month Low: A Technical Analysis
AUD/USD Dips to a 1-Month Low: A Technical Analysis

The AUD/USD currency pair has been experiencing a downward trajectory, slipping to a fresh one-month low of 0.6606, indicating a negative wave that initiated from 0.6870...

16 Jan 2024

Australian Dollar Grapples with Uncertainty Ahead of US Nonfarm Payrolls Release
Australian Dollar Grapples with Uncertainty Ahead of US Nonfarm Payrolls Release

The Australian Dollar (AUD) is exhibiting a phase of stability, yet with underlying pressures, as it hovers near a key psychological level of 0.6700...

5 Jan 2024

AUDUSD Wave Analysis: Facing Resistance and Poised for Potential Decline
AUDUSD Wave Analysis: Facing Resistance and Poised for Potential Decline

AUDUSD Encounters Stiff Resistance, Signaling a Potential Downward Correction. The Australian Dollar against the US Dollar (AUDUSD) has recently encountered...

29 Dec 2023

AUD/USD Pauses Just Above 0.6600 Ahead of US Payrolls Release
AUD/USD Pauses Just Above 0.6600 Ahead of US Payrolls Release

The Australian Dollar (AUD) is maintaining a modestly positive stance, with bearish pressure being capped around the 0.6590 level. The currency pair is poised to remain within a trading range...

8 Dec 2023

AUD/USD Eyes the 0.6745 Resistance Level Amidst Strengthening Momentum
AUD/USD Eyes the 0.6745 Resistance Level Amidst Strengthening Momentum

Overview of AUD/USD's Current Trajectory Economists Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group have forecasted potential further gains for the Australian Dollar against the U.S. Dollar (AUD/USD)...

4 Dec 2023

AUDUSD Technical Forecast: Navigating the Bearish Waves with Key Resistance and Support Levels
AUDUSD Technical Forecast: Navigating the Bearish Waves with Key Resistance and Support Levels

The AUDUSD currency pair has recently showcased a significant technical development, marked by a reversal from a critical resistance level. This shift occurred at the 0.6500 mark...

17 Nov 2023


MultiBank Group information and reviews
MultiBank Group
84%
XM information and reviews
XM
82%
FP Markets information and reviews
FP Markets
81%
FXTM information and reviews
FXTM
80%
AMarkets information and reviews
AMarkets
79%
BlackBull information and reviews
BlackBull
78%

© 2006-2024 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.