The Reserve Bank of Australia maintained interest rates at 2% this morning, as widely expected, yet the Aussie fell as the language suggested the next move from the central bank is more likely to be a cut in interest rates rather than a hike. It should be noted that the statement did not have its usual strong dovish tone to it, and as a result expectations by investors for an interest rate hike in the near term may be pushed back, which may lead to a relief rally in the AUD. Meanwhile, GBPUSD was the largest G-10 gainer yesterday, following positive manufacturing data out of the UK coupled with dreadful manufacturing figures out of the US, gaining nearly 1.4% at one point. Lastly, USDCAD is gaining nearly 0.5% in early trading, resulting from yesterday’s 7% decline in oil prices in addition to WTI crude declining a further 1.4% today. The UK is set to publish construction PMI data this morning, which is forecasted to remain relatively unchanged at 57.6 vs. last month’s 57.8 figure. NZD traders will be active today beginning with the bi-weekly dairy auction this afternoon, and followed by employment figures tonight – which are anticipated to show a small uptick in the unemployment rate to 6.1%. Lastly, several central bankers are scheduled to speak overnight, commencing with RBNZ Governor Wheeler, followed by BOJ Governor Kuroda. |
