RBA meeting looms

May 4, 2021

Attention turns to Australia as its central bank wraps up another interest rate meeting.

The EURUSD opened the week at $1.20303 and slipped to lows of $1.20120 mid-session. It bounced off those lows and climbed to high of $1.20760 late in the day. It has come away from those highs and is now trading at $1.20523. The GBPUSD performed better overnight when it started the week at $1.38138. After dipping to lows of $1.37997 mid-session, the pound rallied and peaked at $1.39312 late. It has given up some of those gains and is now trading at $1.38926.

Indices started the week in positive fashion, with the Dow and Dax both ending the session higher. The Dow began the week at 33,937.07 and edged down to lows of 33,929.86 in the first hour of trade. It lifted off those lows shortly afterwards and gained momentum mid-session, where it hit a high of 34,226.79. It fell away from those highs late and is now trading at 34,073.30. The Dax opened at 15,191.06 and climbed to highs of 15,280.53. This was met with a swift sell-off as the Dax dropped to lows of 15,117.56 just two hours later. However, the German index bounced back just as quick, rallying to a near-session high of 15,279.25. It eventually closed at 15,270.31. It has started the new day lower and is currently trading at 15,218.00.

The day ahead sees focus turn to Australia and the latest RBA meeting. Interest rates are tipped to remain on hold at 0.1%, where they have been since November 2020. Investors will be looking to remarks made by the RBA Governor for any guidance in-regards-to the outlook of the Australian economy.

Other data published today includes:

Canada – Building Permits, Trade Balance

NZ – RBNZ Financial Stability Report

Europe – French Gov Budget Balance, Swiss SECO Consumer Climate

US – Trade Balance, Factory Orders, IBD/TIPP Economic Optimism

UK – Final Manufacturing PMI, M4 Money Supply, Mortgage Approvals, Net Lending to Individuals


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