Global Markets:
- Asian stock markets: Nikkei down 0.40 %, Shanghai Composite gained 2.40 %, Hang Seng fell 0.85 %, ASX 200 declined 0.95 %
- Commodities: Gold at $1125.90 (-0.20 %), Silver at $14.28 (-0.40%), WTI Oil at $30.91 (-2.25 %), Brent Oil at $33.60 (-1.85 %)
- Rates: US 10 year yield at 1.94, UK 10 year yield at 1.62, German 10 year yield at 0.36
News & Data:
- RBA Keeps Its Cash Rate On Hold At 2.00% As Expected
- RBA: Continued Low Inflation May Provide Scope For Easier Policy
- RBA: Inflation Likely To Remain Low Over Next Year Or Two
- RBA: A$ Continuing Adjustment To Evolving Economic Outlook
- RBA: Reasonable Prospects For Continued Economic Growth
- RBA: Business Conditions Above Average, Jobs Growth Up
- Australia ANZ Roy Morgan Weekly Consumer Confidence Index (W/E 31 Jan): 111.2 (prev 112.2)
- New Zealand ANZ Commodity Price Index (MoM) Jan: -2.3% (prev -1.8%)
- South Korea CPI (MoM) Jan: 0.0% (exp 0.4% prev 0.3%)
- South Korea CPI (YoY) Jan: 0.8% (exp 1.1% prev 1.3%)
- PBoC Fixes Yuan Reference Rate At 6.5510 (prev 6.5539)
Markets Update:
The Australian Dollar fell after the RBA rate decision and statement release. While the central bank left rates unchanged, as expected, the statement was slightly more dovish than the market anticipated. The RBA noted that inflation is likely to remain low over the next year or two and that continued low inflation may lead to further easing. AUD/USD declined from 0.7125 to 0.7075 so far and intraday support is seen at 0.7040 & 0.70.
AUD/NZD fell to 1.0840, which was also yesterday's low, and bounced from there as the NZD weakened as well. After almost reaching the 1.10 level, the pair ran out of momentum and is now on the defensive, but short-term techs remain bullish as long as it can hold above 1.0750.
Price action in the other major pairs was quiet. EUR/USD consolidated in a 1.0882-1.0912 range, while GBP/USD traded 1.4406-1.4435 overnight. USD/JPY came under slight pressure as Asian stock markets opened lower. The pair fell from 121.05 at the Sydney open to a low of 120.60. Support can be expected at 120.00 and 119.10.
Upcoming Events:
- 08:15 GMT – Swiss Retail Sales
- 08:55 GMT – German Employment Change
- 08:55 GMT – German Unemployment Rate
- 09:30 GMT – UK Construction PMI
- 10:00 GMT – SNB Chairman Jordan speaks
- 10:00 GMT – Euro Zone Unemployment Rate
- 18:00 GMT – FOMC Member George speaks
- 21:45 GMT – New Zealand Employment Change
- 21:45 GMT – New Zealand Unemployment Rate
- 23:45 GMT – RBNZ Governor Wheeler speaks
