The Market In Brief:
Market Events Due:
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AUD/USD: As expected the RBA left rates at 2% yesterday with Stevens stating that the Aussie was still adjusting to lower commodity prices and that inflation is expected to remain on target for the next couple of years. The market reacted well to a surprisingly upbeat RBA and we saw the AUD push higher throughout the session to open this morning at a 2 week high. Domestically we have very little data due and with China still on public holidays the next direction for AUD will be driven by the US and the pending employment data.
AUD/EUR: EU President Draghi was speaking overnight at the art inauguration although his comments were very much focussed on art and culture rather than the economy. Overnight we also saw the Euro shrug off poor German factory orders to open stronger this morning.
AUD/GBP: Growing speculation that the Fed will delay a rate hike until 2016 and an expanding US trade deficit has helped push Sterling higher throughout yesterday’s sessions. All eyes now turn to the UK manufacturing data out in the UK overnight and the BOE rate announcement on Thursday.
AUD/NZD: As anticipated the Dairy Trade Auction reported a fourth consecutive gain and with expectation that the Fed will not hike rates till 2016 the NZD pushed higher. The recovering Dairy prices have also helped ease suggestions that the RBNZ are looking to cut rates further to stimulate the economy and have pushed the kiwi to near 6 week highs.
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