The RBA kept rates on hold Tuesday afternoon but despite holding, the rhetoric from the RBA in their accompanying rate statement appeared quite dovish and the result was a sharp selloff in AUD across the board. Today AUD is around 1% lower than Tuesday morning with most of that fall happening in the minutes following the rate statement on Tuesday afternoon.
Ahead today we have further Aussie and U.S economic data which kicks off with local trade balance figures at 11.30am and then preliminary ADP jobs numbers out of the U.S around 10pm this evening. Perhaps the key data announcement is the ADP jobs number as it is a precursor or indicator of what we’ll see in the official U.S jobs numbers on Friday evening (Non-Farm Payrolls). Expectations are to see around 180K new jobs which would be a sharp drop in the trend from the past 6 or so readings.
Local trade balance figures out at 11.30am are expected to show another positive trade balance figure with mining exports driving the export surplus for a 7 month straight on the back of increased activity out of China and other developing nations.
DATA RELEASES TODAY:
AUD – Trade Balance at 11.30am
USD – ADP Prelim Jobs Numbers at 10.15pm
USD – ISM Non-Manufacturing PMI at midnight
AUD EXCHANGE RATES:
AUD/USD – 0.7603
AUD/GBP – 0.5876
AUD/EUR – 0.6696
AUD/NZD – 1.0429
AUD/JPY – 86.040
***Above rates are indicative wholesale rates and intended as a guide only***
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