Partner Center Find a Broker

Aussie traders shrugged off the RBA’s news in favor of pricing in a positive manufacturing report. Meanwhile, the low-yielding franc gave up pips on a bit of profit-taking from yesterday’s selloffs.

  • Australia’s AIG manufacturing index up from 57.5 to 63.1 in March
  • Australia’s ANZ job ads steadies in March vs. 0.4% decline in February
  • RBA keeps rates at 1.50% as expected in April

Major Events/Reports:

RBA keeps rates at 1.50%

As expected, the Reserve Bank of Australia (RBA) kept its interest rates steady at a record low of 1.50% for another month in April. This marks the 19th consecutive month that the central bank hasn’t changed its rates. That’s the longest since records began in the 90’s, yo!

Governor Philip Lowe didn’t say anything new either. He maintained that the economy is expected to grow faster this year than in 2017, and that a higher exchange rate would result to slower growth and inflation rates.

Both inflation and wages are expected to “remain low for some time,” though improvements in the labour market and competition in retailing point to both picking up over time.

Last but not the least, RBA repeated its concern over high debt levels and low household income and their impact on household consumption even as consumption growth picked up in late 2017.

Mixed Asian session trading

The Asian bourses continued to worry over an escalating trade war between the world’s economic giants.

  • Nikkei is down by 0.51% to 21,280.2;
  • Australia’s A SX 200 is down by 0.21% to 5,743.3;
  • Hang Seng is down by 0.59% to 29,916.7, and
  • Shanghai index is down by 1.06% to 3,129.617.

Commodity players were (mostly) over it, though.

  • Gold is down by 0.25% to $1,337.98 on a bit of dollar recovery;
  • Brent crude oil is up by 0.34% to $67.73, and
  • U.S. WTI is up by 0.38% to $63.08.

Major Market Mover(s):

AUD
There were no explosives from the RBA today, which is why traders had extended their pro-Aussie party from when the positive AIG manufacturing report was released.

AUD/USD is up by 27 pips (+0.35%) to .7687;
AUD/NZD is up by 31 pips (+0.30%) to 1.0649;
AUD/JPY is up by 33 pips (+0.41%) to 81.44, and

CHF
A bit of profit-taking from yesterday’s heavy selloffs weighed on the low-yielding franc today.

AUD/CHF is up by 30 pips (+0.41%) to .7345;
GBP/CHF is up by 23 pips (+0.17%) to 1.3428;
NZD/CHF is up by 14 pips (+0.20%) to .6897, and
CAD/CHF is up by 20 pips (+0.27%) to .7412.

Watch Out For:

  • 7:00 am GMT: Germany’s retail sales (0.7% expected, -0.7% previous)
  • 8:00 am GMT: Spain’s unemployment change (-47.5K expected -6.3K previous)
  • 8:15 am GMT: Switzerland’s retail sales (y/y) (-0.7% expected, -1.4% previous)
  • 8:15 am GMT: Spain’s manufacturing PMI (54.7 expected, 56.0 previous)
  • 8:30 am GMT: Switzerland’s manufacturing PMI (64.3 expected, 65.5 previous)
  • 8:45 am GMT: Italy’s manufacturing PMI (55.6 expected, 56.8 previous)
  • 8:50 am GMT: France’s final manufacturing PMI to remain at 53.6?
  • 8:55 am GMT: Germany’s final manufacturing PMI expected to maintain 58.4 reading
  • 9:00 am GMT: No changes expected from Euro Zone’s final manufacturing PMI
  • 9:30 am GMT: U.K.’s manufacturing PMI (54.8 expected, 55.2 previous)