RBA meeting looms

July 7, 2020

Attention turns local as the latest central bank meeting in Australia wraps up.

The EURUSD made some solid gains overnight after opening the day at $1.12390. The pair dipped to lows of $1.12378 before rallying for most of the day, peaking at $1.13453 as it headed into late-session trading. It has come off those highs and is now trading at $1.13221. The GBPUSD opened the week at $1.24605 and slid to lows of $1.24564 in the opening hour. It bounced off those lows and climbed to a high of $1.25195 mid-session. It briefly gave up a chunk of those gains before bouncing back again. It is currently trading at $1.25051.

Indices started the week in fine form, with the Dow leading the way. The index opened at 25,818.44 and dipped to a low of 25,797.15 in the opening hour. It rallied throughout the day, hitting a high of 26,319.64 in the final hour of the session. It is not far from those highs and is currently trading at 26,273.65. The Dax made some modest gains overnight after beginning the week at 12,630.64. The German index edged down to a low of 12,623.45 in the opening hour but rebounded quickly, hitting highs of 12,845.30 mid-session. It gave up some of those gains over the back half of the day and is now trading at 12,753.40.

The day ahead sees Australia’s central bank, the RBA, wrap up its latest interest rate meeting. While rates are tipped to remain on hold at 0.25%, analysts will be keenly watching what the RBA Governor has to say at the end of the meeting. This could give clues as to future monetary policy settings should the Australian economy deteriorate further.

Other data published today includes:

UK – Halifax HPI

Canada – Ivey PMI

Japan – Leading Indicators

Australia – RBA Rate Statement

US – JOLTS Job Openings, IBD/TIPP Economic Optimism

Europe – German Industrial Production, French Trade Balance, Italian Retail Sales, Swiss Foreign Currency Reserves


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