Article Highlights

  • RBA minutes: Monetary policy to stay accommodative
  • RBA minutes: AUD remains historically high
  • Australian new motor vehicle sales up by 0.3%
  • BOE member Miles: Can vote for a rate hike before he steps down
  • U.K. CPI to dip from 1.8% to 1.7% y/y
  • German and euro zone ZEW figures to show improvements?
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Talk about going down under! The Australian dollar got wiped out in today’s Asian trading session, as the RBA meeting minutes spurred a bearish wave. The minutes showed that policymakers agreed to keep monetary policy accommodative and that they believe the Aussie remains high by historical standards. It was even mentioned that weak mining investment might need support from low interest rates for the time being.

With that, AUD pairs seemed to ignore the pickup in new motor vehicle sales of 0.3% from the previous 0.1% uptick. AUD/USD is trading at .9350 as of this writing from a session high of .9404 while AUD/JPY broke below the 95.50 minor psychological support.

The focus could shift to the British pound now, as the U.K. economy will print its headline and core CPI readings for May. The annual inflation reading is slated to dip from 1.8% to 1.7%, which might lead to weaker rate hike speculations, but special attention could be paid to the home price figures. Remember that BOE Governor Carney recently spoke of the need to hike interest rates sooner rather than later as housing inflation could surge out of control.

Also due in the next few hours is the German and euro zone ZEW economic expectations figures, which are expected to show considerable improvements and provide a bit of support to the euro. Weak results, on the other hand, could lead to a deeper euro selloff. Do watch out for the release of Swiss PPI data as this could set the tone for the SNB rate statement later on this week.


U.S. Session Recap

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