Global Markets:
- Asian stock markets: Shanghai Composite gained 0.05 %, Hang Seng rose 0.20 %, ASX up 1.30 %, Nikkei closed for a holiday
- Commodities: Gold at $1135.50 (-0.04 %), Silver at $15.42 (+0.10 %), WTI Oil at $46.25 (+0.25 %), Brent Oil at $48.80 (+0.05 %)
- Rates: US 10 year yield at 2.17, UK 10 year yield at 1.94, German 10 year yield at 0.57
News & Data:
- RBA Leaves Cash Rate On Hold At 2.00% As Expected
- RBA: Inflation Outlook May Afford Scope For Policy Easing
- RBA: To Assess Whether Current Policy Will Foster Growth
- RBA: Judged Prospects For Economic Improvement Had Firmed
- RBA: AUD Adjusting To Significant Declines In Commodity Prices
- RBA: Monetary Policy Needs To Be Accommodative
- RBA: RBA: Notes Somewhat Stronger Growth In Employment
- Australia ANZ Roy Morgan Weekly Consumer Confidence Index (w/e 1 Nov): 115.2 (prev 113.4)
- New Zealand QV House Price Index (YoY) Oct: 14.0% (prev 12.6%)
- New Zealand ANZ Commodity Price Index (MoM) Oct: 6.9% (prev 5.5%)
Markets Update:
The RBA left rates unchanged, as expected. Price action was volatile however, with the AUD/USD first falling from 0.7170 to 0.7110, only to recover and reach a high of 0.7200 a few minutes later. The pair extended gains to 0.7212 later and the next intraday resistance level now lies at 0.7240. AUD/NZD fell as low as 1.0530 post-RBA, but bounced from there and is now on its way towards the 1.07 level. The cross flows but some pressure on the Kiwi Dollar and NZD/USD fell from 0.6770 to 0.6740.
Price action in the other major pairs was quiet. EUR/USD opened around 1.1010 in Sydney and spent most of the session in a 1.1005-20 range. GBP/USD consolidated between 1.5410 and 1.5425. USD/JPY ran into decent resistance above 120.80 and fell back to 120.65. It is unlikely that we will see any major breakout in the pair ahead of the NFP release, so further consolidation between 119.50 and 121.50 seems likely.
Upcoming Events:
- 09:30 GMT – UK Construction PMI
- 15:00 GMT – US Factory Orders
- 19:00 GMT – ECB President Draghi speaks
- 21:45 GMT – New Zealand Employment Change
- 21:45 GMT – New Zealand Unemployment Rate
