- RBA minutes: Policymakers considered cutting rates this month
- BOJ kept monetary policy unchanged
- Nikkei up by 0.99% for the day
- German ZEW index and euro zone final CPI data due
Ha! It looks like the RBA came pretty close to cutting interest rates again during their policy statement this month. The minutes of their March meeting revealed that policymakers acknowledged the need for further easing but decided to pause and wait for more economic data to come in.
This wasn’t so much of a surprise for most forex traders though, as AUD/USD is only down 7 pips so far (-0.11%) and AUD/JPY is lower by 8 pips (-0.07%). The RBA minutes also indicated that officials were concerned about stoking a housing price bubble, which also prevented them from lowering interest rates recently.
Meanwhile, the BOJ also decided to sit on its hands again, as the Japanese central bank refrained from making any changes in monetary policy. Yen pairs continued to trade sideways after the event, as forex traders are still waiting to see if there will be any surprises during the press conference.
USD/JPY is up 5 pips (0.04%), GBP/JPY is higher by 8 pips (0.05%) and edging close to 180.00, while EUR/JPY is flat.
Up ahead, the forex calendar suggests that euro pairs might be in for a bit of volatility with a couple of data points due from the euro zone. Germany is set to print its ZEW economic sentiment index at 11:00 am GMT and possibly show an improvement from 52.7 to 58.2, which could give the shared currency a bit of a boost. The euro zone final CPI reading is also up for release and it could indicate a 0.3% drop in price levels.
No other major reports are lined up but do stay tuned for any market updates that might affect overall risk sentiment. Stay on your toes!
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