RBA decision looms

December 4, 2018

A stack of data set for release today, headlined by the interest rate decision from Australia.

USD-paired currencies opened much higher on Monday due to a weaker dollar caused by the G20 summit over the weekend. The EUR/USD opened the day at $1.13482, and after an initial dip, climbed throughout early, peaking at $1.13787. The pair began its slide from there as it hit a low of $1.13186 mid-session. However, it was able to recover a large chunk of those losses late in the day and is currently trading at $1.13519. The pound copped a belting overnight as Brexit worries weigh on the currency. The GBP/USD opened the week at $1.27634, dipped early and then rallied throughout early trading. The start of mid-session trading saw the pair hit highs of $1.28244 before the sell-off kicked in. The following few hours saw the pound plummet to lows of $1.26985. It climbed of those lows but was ultimately unsuccessful in regaining most of those losses. It is currently trading at $1.27232.

Indices opened much higher thanks to US-China tariff agreements. The Dow opened at 25,850.84, which is around 285 points higher than its closing price on Friday. The US index climbed gradually until it hit a high of 26,070.20 mid-session. The Dow started to slide from that point as it hit a low of 25,667.20 several hours later, before closing at 25,812.90. The Dax opened at 11,547.36, some 230 points higher than Friday’s close. The German index quickly climbed to a high of 11,567.10 before its decline began. The Dax slid to lows of 11,430.60 late in the day before closing at 11,480.10.

The day ahead is a busy one, with plenty of data about. Today sees the release of the interest rate decision from Australia. While rates are expected to remain unchanged, the outlook for the Australian economy and the language used by policymakers come into focus. Other data set for publication include:

Canada – Labour Productivity

US – FOMC Member John Williams speaks

Australia – Cash Rate, RBA Rate Statement, AIG Services Index

UK – Construction PMI, BoE Governor Mark Carney and MPC Member Gertjan Vlieghe speak

Europe – European PPI, French Government Budget Balance, Spanish Unemployment Change, ECOFIN Meetings


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