Article Highlights

  • Australia sees 2013/14 budget deficit at $47 billion versus $30.1 billion forecast in August
  • RBA still open to rate cuts but believes past cuts are working
  • RBA believes AUD is still uncomfortably high
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Investors are still stuck in consolidation mode during the Asian session as we barely saw significant movement from the major currencies. EUR/USD and GBP/USD inched a bit higher but USD/JPY stayed within the 103.00 area.

The comdolls were also on a standstill despite a couple of potential market movers from Australia. For one thing, the RBA minutes stated that the central bank is still considering further rate cuts and thinks that AUD is uncomfortably high. Meanwhile, the mid-year economic and fiscal outlook revealed that the government is expecting a budget deficit of $47 billion, a lot higher than the $30.1 billion estimates back in August.

Up ahead are the U.K.’s CPI numbers at 10:30 am GMT and the German and euro zone ZEW data at 11:00 am GMT. The reports are the only red flags during the session, so we might see bigger movement in EUR and GBP pairs around the times of the releases. Keep close tabs on these, will ya?

See also:

U.S. Session Recap

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