Well, its that time of month again where all eyes converge on the RBA as they deliver not just their cash rate decision but also and perhaps more importantly their rate statement. The reason why I say the rate statement is more important is because we’ve become quite accustomed to no change in interest rates, hence with no change we as market participants generally then look at the rate statement for clues as to the RBAs next move. All likelihood today is for no change to interest rates from 1.5% but again nothing is certain. Should the RBA decide to cut rates and support the local economy, there would be a swift sell off in AUD and a likely strong bounce in mining stocks as they benefit from a lower dollar.
Equities across Europe and the U.S were generally higher over night, while commodities bar iron ore were mostly flat. Other economic data due out tonight includes U.K Construction PMI at 6.30pm.
DATA RELEASES TODAY:
AUD – Retail Sales at 11.30am
AUD – Cash Rate at 2.30pm
GBP – Construction PMI at 6.30pm
AUD EXCHANGE RATES:
AUD/USD – 0.7627
AUD/GBP – 0.5891
AUD/EUR – 0.6701
AUD/NZD – 1.0471
AUD/JPY – 86.513
***Above rates are indicative wholesale rates and intended as a guide only***
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Patrick Downes
Senior Corporate FX Dealer
Phone Patrick – 0431 278 632
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