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The Aussie traded higher on the back of a relatively upbeat quarterly statement from the RBA, while the Kiwi got dragged lower on a profit-taking wave ahead of the NFP release.

  • Japan’s markets out on Greenery Day holiday
  • China’s Caixin services PMI up from 52.3 to 52.9 vs. 52.2 expected in April
  • All eyes on the NFP release

Major Events/Reports:

RBA’s monetary policy statement

Earlier today we saw the Reserve Bank of Australia (RBA) print its quarterly policy statement.

The central bank was mostly upbeat, saying that there is a risk that inflation will pick up quicker than expected, and that overall growth in 2018 and 2019 is expected to be faster than what we saw in 2017.

RBA also cited other uncertainties including escalation of trade tensions, the degree of spare capacity in the labour market, and the impact of the uncertainty around income growth to overall growth outlook.

Overall, Governor Lowe and his team remain confident that the economy is gaining momentum and that inflation will continue to rise gradually.

All eyes on the NFP report

With no other major catalysts on the docket, Asian session took profits off the table ahead of the NFP report.

  • Australia’s A SX 200 is down by 0.78% to 6,053.9
  • Hang Seng is down by 0.35% to 30,208.4
  • Shanghai index is down by 0.12% to 3,097.015

Even commodity prices reflected the overall cautiousness ahead of the event.

  • Gold is up by 0.10% to $1,313.27
  • Brent crude oil is down by 0.16% to $73.55
  • U.S. WTI is down by 0.18% to $68.34

Read Forex Gump’s event preview if you’re planning on trading the event!

Major Market Mover(s):

With not a lot of catalysts to price in, Aussie bulls were happy to chew on the RBA’s upbeat remarks.

AUD/USD is up by 25 pips (+0.33%) to .7556
AUD/JPY is up by 13 pips (+0.16%) to 82.36
EUR/AUD is down by 44 pips (-0.28%) to 1.5871
GBP/AUD is down by 45 pips (-0.25%) to 1.7972
AUD/NZD is up by 57 pips (+0.53%) to 1.0752

The New Zealand dollar failed to hitch a ride with the Aussie and was instead dragged lower by a combination of a strong AUD/NZD and a bit of profit-taking ahead of today’s NFP report.

NZD/USD is down by 14 pips (-0.20%) to .7027
NZD/JPY is down by 29 pips (-0.37%) to 76.60
EUR/NZD is up by 40 pips (+0.23%) to 1.7065
GBP/NZD is up 49 pips (+0.25%) to 1.9324

Watch Out For:

  • 6:45 am GMT: France’s government budget balance
  • 6:45 am GMT: France’s trade balance (-4.9B EUR expected, -5.2B EUR previous)
  • 7:00 am GMT: Spain’s unemployment change (-100.2K expected, -47.7K previous)
  • 7:15 am GMT: Spain’s services PMI (56.1 expected, 56.2 previous)
  • 7:45 am GMT: Italy’s services PMI (56.1 expected, 56.2 previous)
  • 7:50 am GMT: France’s final services PMI (no changes expected from 57.4)
  • 7:55 am GMT: Germany’s final services PMI (no changes expected rom 54.1)
  • 8:00 am GMT: Euro Zone’s final services PMI (no changes expected from 55.0)
  • 9:00 am GMT: Euro Zone retail sales (0.5% expected, 0.1% previous)