RBA meeting looms
Markets look local as Australia’s central bank meets for the first time in 2020.
The EURUSD traded in a tight range to start the week, erasing some of the gains it made last Friday. The pair began the week at $1.10926 and ticked up to a high of $1.10934 in the opening hour. The slide started shortly afterwards with the euro dropping to lows of $1.10349 late in the day. It bounced off those lows and is now trading at $1.10583. The GBPUSD had a dreadful start to the week as it was belted as much as two cents overnight. The pair opened at $1.31750 and edged up to a high of $1.31831 early in the day before taking a turn for the worse. The pound was hammered early and those losses accelerated as the day rolled on as it hit lows of $1.29817 late in the day. It is not far off those lows, currently trading at $1.29881.
The Dow made some small gains to start the week as it tries to regain the losses suffered in last Friday’s sell-off. Opening the week at a low of 28,250.14, the Dow made some early gains before remaining steady for a large chunk of the day. Late trading saw the index peak at 28,628.49 before falling away and closing at 28,425.00. It is now trading at 28,400.50. The Dax made some small gains overnight in a steady start to the week. the German index opened at a low of 12,963.51 and climbed gradually throughout the day, peaking at 13,082.54 late. It came off those highs and closed at 13,031.11.
The day ahead sees the RBA meet for the first time this year in what will be an intriguing meeting for traders. Since their last meeting in December, the bush fires have caused further large-scale damage to the country, while the coronavirus has taken hold in China, with trade and tourism sectors likely to be the most affected. While rates are tipped to remain on hold, it will be important to listen to the head of the RBA to see what significance these events have in deciding the future make up of monetary policy settings.
Other data published today includes:
UK – Construction PMI
Australia – AIG Construction Index
US – Factory Orders, IBD/TIPP Economic Optimism
Europe – French Government Budget Balance, Spanish Unemployment Change, European PPI, Italian Prelim CPI
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