Market Update – 3rd July 2018 – Cash Rate & RBA Statement To Shake Things Up At 2.30pm

A bit on today in terms of economic data with building approvals at 11.30am kicking off the festivities. The market is expecting to see a continuing of weakness in the construction sector with 0.1% month on month growth anticipated which follows a 5% contraction last month. This data however shouldn’t have too much of an impact on the Aussie Dollar while the RBA Statement and official Cash Rate decision at 2.30pm will, particularly if we see any comments which break from the current rhetoric used by RBA Chief Philip Lowe.

Expectations are that we’ll see no change to the current cash rate which stands at 1.5%, however it will be interesting to hear what the RBA have to say in terms of the current trade war which is taking place between China & Trump, and the flow on effect to weaker commodities prices. Could we see a curve ball from the RBA? We will find out at 2.30pm.

U.S equities finished last nights session higher, while European equities lost ground following the lead of Asia where we saw Japanese and Chinese markets get belted to the tune of about 2-3% yesterday. Markets certainly dislike risk and Trump’s trade war crusade is providing bucket loads of risk at the moment. Aussie equities are set to open marginally higher today but markets will be guided by todays Cash Rate decision & Rate Statement.

AUD EXCHANGE RATES:

AUD/USD – 0.7335

AUD/GBP – 0.5582

AUD/EUR – 0.6303

AUD/NZD – 1.0937

AUD/JPY – 81.332

USD/BTC – $6,591

OTHER MARKETS: 

All Ords (XAO) – 6,273

Gold – A$1,692/oz

Silver –  A$21.60/oz

WTI – US$72.84/barrel

DATA RELEASES TODAY:

AUD – Building Approvals at 11.30am

AUD – RBA Rate Statement & Cash Rate at 2.30pm

GBP – Construction PMI at 6.30pm

Sign up for a Compass account today and access some of the most competitive rates in the business and arguably the best service.

 

{{cta(‘b4d1fdf3-9b81-4df4-87c2-23257194f470’)}} 

Patrick's Signature-802090-edited.jpg

Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

  {{cta(’22fd720b-8ddc-4846-85e4-6ab59d459f68′)}}

CompassFB-1

 

Leave a Reply

Your email address will not be published.