Markets eye RBA meeting

March 2, 2021

Attention turns to Australia as its central bank meets today.

The EURUSD began the week at $1.20679 and lifted to a high of $1.21007 early. It remained near those levels for a few hours before falling away, hitting lows of $1.20267 late. It is not far off those lows, currently trading at $1.20455. The GBPUSD looked set for a strong start to the week until a reversal of fortunes during the back half of the session saw the pair end the day flat. The pound started the week at $1.39210 and climbed to highs of $1.39980 early. It remained steady for a short time before heading south and hit a low of $1.39030 late. It is now trading at $1.39245.

It was a strong start to the week for indices, with the Dow and Dax both benefitting from positive sentiment. The Dow opened at 31,019.79 and dipped to a low of 30,961.95 in the first hour of trade. Those lows were not held for long as the Dow rebounded quickly and rallied for the majority of the day, peaking at 31,663.70 late. It has come off those highs and is now trading at 31,559.51. The Dax started Monday at 13,879.01 and slipped to a low of 13,848.03 early. Bouncing off those lows, the Dax rallied to a late high of 14,034.68, where it is currently trading.

The day ahead features the latest interest rate meeting from the RBA. While interest rates are tipped to remain on hold at 0.1%, the remarks made by Governor Philip Lowe will come into focus. He is likely to comment on the outlook of the Australian economy and if other monetary policy measures will be deployed by the central bank.

Other data published today includes:

Canada – GDP

UK – Nationwide HPI

NZ – Building Consents, GDT Price Index

Australia – RBA Rate Statement, AIG Construction Index

Europe – German and Spanish Unemployment Change, German Retail Sales, European CPI & Core CPI Flash Estimates

US – Wards Total Vehicle Sales, IBD/TIPP Economic Optimism, FOMC Members Lael Brainard and Mary Dale speak


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