Australia in focus as rate decision looms

March 6, 2018

Plenty of information for traders to sink their teeth in to today, with attention for markets taking on a local flavour.

The EUR/USD ended the session higher as market jitters around Trump’s tariffs appeared to ease. The pair hit session lows early in trading, dipping as low as $1.22681. From that point onward, it added value, with some peaks and troughs along the way. It eventually reached session highs of $1.23482 before paring back some of those gains to be currently trading at $1.23330. The GBP/USD also hit lows early, falling as far as $1.37652. It then gathered momentum as it peaked at $1.38772. It has come off those highs to be now trading at $1.38430.

Well, you can’t pick the Dow at the moment. It was reasonably flat during early and mid-session, bottoming-out at 24,311.00. It was looking like it could possibly dip below 24,000 as the index showed signs of weakness. Then, after a couple of hours after the US markets opened, it decided to rally, where it piled on more than 600 points to reach session highs of 24,959.40. It has retreated off those highs though, currently trading at 24,885.40. The Dax followed the Dow’s lead, but not as pronounced. The Dax dropped to session lows of 11,729.70 not long after it opened, but basically from that point on, it was on an upward trajectory. It gained over 300 points to peak at 12,183.20. It is not far off those highs, trading at 12,168.30.

Looking ahead to today and there is plenty of significant information set for publication. The most important is the Cash Rate from Australia. It is that time of the month where the RBA meets to discuss interest rates and monetary policy. While no rate change is expected, it is crucial to listen to what is being said by policymakers and the language used. This will give traders an insight into the RBA’s economic outlook and also future monetary policy settings. RBA Governor, Philip Lowe is also expected to be speaking early tomorrow morning. Other data set for release today includes:

Australia – Retail Sales, Current Account, AIG Construction Index

NZ – GDT Price Index

Europe – Swiss CPI, European Retail PMI

Canada – Ivey PMI

UK – BRC Retail Sales Monitor, MPC Member Andy Haldane speaks

US – Factory Orders, IBD/TIPP economic Optimism, FOMC Member Lael Brainard speaks


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