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Reserve Bank of Australia (RBA): “AUD is historically high”

In its interest rate statement the RBA kept its rates at 2.50% but warned that the Aussie is still high by “historical standards.” The announcement didn’t deter the Aussie bulls who got busy after Australia printed a strong building approvals report.

It also helped the Aussie that Glenn Stevens didn’t jawbone as much as usual. Instead of jawboning the comdoll he peppered his speeches with hints that the RBA is still waiting for the impact of previous rate cuts and that the rate cut cycle may be over for now. AUD/USD is up by 220+ pips as of writing.

Bank of Canada (BOC): “Q1 2014 growth might not be as good as in Q4 2013”

As expected, the BOC kept its rates unchanged at 1.00%. The central bank had also cautioned that growth in Q1 2014 might not be as strong as in Q4 2013 but left no hints to its future policy actions. USD/CAD had popped up to 1.1099 at the news release but ended the day 73 pips below its open price as traders paid attention to weak U.S. reports and overall risk appetite.

Bank of England (BOE): “__________”

Once again Carney and his gang kept the BOE’s interest rates at 0.50% and monthly asset purchases at 375 billion GBP. Major pound pairs barely reacted to the lack of news with Cable and Guppy both falling by at least 40 pips before erasing all of their losses an hour after the release.

European Central Bank (ECB): “What do we say to stimulus-hunters? Not today.”

The ECB had also kept its interest rates steady for the month of March. Of course, it was Draghi’s press conference that got the investors’ attention. Draghi brushed off speculations of more monetary stimulus from the central bank, saying that the region’s recovery will continue and that they have not seen developments in the money markets that would warrant action.

Draghi had also downplayed inflation fears and even announced that the ECB is expecting a 1.7% inflation rate by Q4 2016, a leap from the 0.8% growth in February. Not surprisingly, the euro jumped across the board with EUR/USD breaking above the major 1.3800 handle and EUR/JPY ending the day with a 200-pip gain.

There you have it, folks! Now that you have an idea on where the central bankers stand, you now have more tools to improve the odds on your NFP day trades. Good luck and good trading!