- RBA: Spare capacity has increased, wage growth remains weak
- RBA: Uncertainty in commodity prices poses risks
- RBA: Chinese economic growth still within target
- Swiss foreign currency reserves and retail sales data due
Forex market watchers focused on the release of the RBA’s official monetary policy statement today, as there were no other top-tier reports lined up. The statement confirmed that RBA officials are feeling more cautious these days, noting that spare capacity has increased in the past months and that wage growth remains weak. They added that the uncertainty in commodity prices poses a risk to the domestic and global economy.
Aussie pairs popped a bit higher right after the release since the statement came in mostly in line with expectations and contained no further dovish surprises. AUD/USD is up 33 pips so far (+0.42%), AUD/JPY is up 23 pips (+0.24%), and AUD/CAD is up 45 pips (+0.47%).
Data is still light in the upcoming London trading session, as market participants might be biting their nails ahead of the NFP release later on. Franc pairs could see a bit of volatility, with Switzerland set to report data on its foreign currency reserves and retail sales around 9:00 am GMT.
Retail sales are expected to show an annualized 0.4% increase, an improvement from the previous 1.2% decline, while the foreign currency reserves level should indicate whether the SNB is secretly and gradually intervening in the forex market to keep the franc weak. Also lined up for today are a couple of medium-tier reports from the euro zone, namely the German industrial production report and French trade balance. Be on the lookout for the U.K. trade balance release at 10:30 am GMT as well if you’ve got any pound trades open!
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