Attention turns local as data and the RBA feature today.

The US dollar continues its ascendancy, pushing paired currencies down overnight. The EURUSD began the day at $1.09890 and remained near those levels throughout early trading, before dipping to lows of $1.09567 mid-session. It has come off those lows slightly and is now trading at $1.09637. The pound was dealt with more harshly overnight as the possibility of a no-deal Brexit or a general election, increase. The GBPUSD opened at $1.21456 and climbed to a high of $1.21741 heading into mid-session trading. The next several hours saw the pair tumble to lows of $1.20344 late in the day. It has bounced off those lows and is now trading at $1.20623.

The Dow struggled overnight, with the public holiday in the US putting a dampener on expectations. The index opened the week at 26,193.71 and climbed gradually throughout early trading, peaking at 26,370.05 heading into late trading. Those highs were given up over the next few hours as the Dow fell to lows of 26,107.12. It has since regained some of those losses and is currently trading at 26,234.06. The Dax opened the week flat, taking a breather from the solid gains made the week before. The German index started the week at 11,918.27 and edged up to a high of 11,993.28 heading into mid-session trading. The Dax dipped from those highs, hitting a low of 11,897.81 a few hours later before closing at 11,942.68.

The day ahead shapes up as an important one for local markets, with the RBA set to meet today. While Australia’s central bank set to leave rates unchanged, the economic outlook through the eyes of the RBA becomes crucial. The Australian economy is showing signs of weakness with the government already hinting at a soft GDP figure to be released on Wednesday. It will be vital to pay attention to the commentary given by RBA Governor Philip Lowe relating to the outlook of monetary policy.

Data published today includes:

UK – Construction PMI

Canada – Manufacturing PMI

Australia – Retail Sales, Current Account, RBA Rate Statement

Europe – European PPI, Spanish Unemployment Change, Swiss CPI

US – ISM Manufacturing PMI & Prices, Final Manufacturing PMI, Construction Spending, IBD/TIPP Economic Optimism

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