We turn to Australia for the most significant data release, but the belting that the US markets took overnight has everyone talking.

The Dow reopened to little fanfare yesterday, hitting a high at the open of 24,178.00. It remained flat throughout early and mid-session trading. However, it took a severe turn for the worse when the US markets opened, plummeting over 840 points to hit session lows of 23,334.82. This is only around 200 points off the lows it hit during the market correction in February. It is currently trading at 23,625.40. This latest drop has been put down to China introducing tariffs on US imports. The NASDAQ and S&P 500 saw similar proportional declines as the Dow weighed heavily on other markets. The Dax was spared the carnage, but only because the market remained closed for Easter holidays. It remains to be seen whether it will follow the Dow or has the fact that it has been closed enough to avoid a sell-off.

The EUR/USD began the session well, peaking at $1.23444 before the USD strengthened. It hit session lows of $1.22806 before rebounding slightly, currently trading at $1.22945. The GBP/USD followed a similar path, reaching highs of $1.40769 early before dropping to session lows of $1.40253. It has recovered from those lows, trading at $1.40474.

Looking at the day ahead and it’s the RBA interest rate meeting that has traders interested. While rates are expected to remain on hold, the language used and the outlook for the economy and monetary policy comes into focus. Other data set for release today includes:

Australia – RBA Rate Statement, ANZ Job Advertisements, Commodity Prices

UK – Manufacturing PMI, BRC Shop Price Index

NZ – GDT Price Index

US – IBD/TIPP Economic Optimism, Total Vehicle Sales, FOMC Member Lael Brainard speaks

Europe – German & Swiss Retail Sales, Spanish Unemployment Change, Italian, Spanish & Swiss Manufacturing PMIs, European, German & French Final Manufacturing PMIs

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