RBA meeting looms

November 5, 2019

Plenty of data is expected to be published today, while Australia’s central bank meets to discuss interest rates.

The USD strengthened overnight, sending paired currencies down. The EURUSD began the week at $1.11674 and traded in a tight range early, ticking up to a high of $1.11748 mid-session. The euro fell from those highs, hitting lows of $1.11240 late in the day. It is not far from those lows, currently trading at $1.11272. The GBPUSD suffered the same fate as the euro after opening at $1.29272. The pair ticked up to a high of $1.29421 early in the day before remaining steady for a few hours. Mid-session trading saw the pound slide, gaining momentum late in the day as it hit a low of $1.28750. It has come off those lows slightly and is now trading at $1.28813.

The Dow made some modest gains overnight, however that was enough to push it to a record high. The index opened the week at 27,382.98 and edged back to lows of 27,375.40 early in the day. It rebounded from that point, where it climbed to highs of 27,521.51 late in the day. It is not far off those highs, currently trading at 27,452.20. The Dax performed strongly overnight, posting solid gains throughout the day. The German index started the week at 12,988.94 and dipped to a low of 12,973.43 in the opening hour of the day. The Dax rallied off those lows, peaking at 13,172.32 late in the day, before closing at 13,131.20.

The day ahead sees the publication of a number of pieces of data, while the RBA meets later today. While interest rates are expected to remain on hold, it will be important to listen to remarks made by the RBA Governor as the central bank reflects on the three interest rate cuts that have taken place in the last three months.

Data published today includes:

Canada – Trade Balance

Japan – Monetary Base

China – Caixin Services PMI

Australia – RBA Rate Statement

UK – Services PMI, BRC Retail Sales Monitor

NZ – Employment Rate, Unemployment Rate, ANZ Commodity Prices

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

US – ISM Non-Manufacturing PMI, Trade Balance, Final Services PMI, JOLTS Job Openings, Mortgage Delinquencies, IBD/TIPP Economic Optimism


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