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
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
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