IronFX Daily Commentary by Charalambos Pissouros | 02/08/2016
August 2, 2016 8:37 am
RBA cuts rates to historic low but offers no easing bias • The RBA cut its interest rate to 1.50% from 1.75% prev. Prospects for economic growth and inflation would be improved by easing. • AUD/USD fell immediately but recovered some of its losses in the following minutes. • No easing bias in the meeting statement, so this may be the last cut for a while. • In addition, a safe political environment and higher yields than most countries could lead to a higher AUD in the medium term. • However, much will depend on the overall risk environment.
Today: • UK: Construction PMI for Jul. is exp. to decline. This is the final piece of post-referendum data before the BoE meeting. A tumble in the index could hurt GBP. • Eurozone: PPI for Jun. but this is usually not a major market mover. • US: Personal income & spending for Jun. Income is exp. to accelerate, spending to slow down but still grow at a healthy pace. Net-net, these could support USD. Canada: RBC manufacturing PMI for Jul. • Speakers: Dallas Fed President Robert Kaplan.
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RBA cuts rates to historic low but offers no easing bias
• The RBA cut its interest rate to 1.50% from 1.75% prev. Prospects for economic growth and inflation would be improved by easing.
• AUD/USD fell immediately but recovered some of its losses in the following minutes.
• No easing bias in the meeting statement, so this may be the last cut for a while.
• In addition, a safe political environment and higher yields than most countries could lead to a higher AUD in the medium term.
• However, much will depend on the overall risk environment.
Today:
• UK: Construction PMI for Jul. is exp. to decline. This is the final piece of post-referendum data before the BoE meeting. A tumble in the index could hurt GBP.
• Eurozone: PPI for Jun. but this is usually not a major market mover.
• US: Personal income & spending for Jun. Income is exp. to accelerate, spending to slow down but still grow at a healthy pace. Net-net, these could support USD.
Canada: RBC manufacturing PMI for Jul.
• Speakers: Dallas Fed President Robert Kaplan.
Join us for more technical and fundamental analysis: http://www.ironfx.com
To get the latest Forex trading news you should:
• Download the IronFX Research app: http://goo.gl/jhQIxO
• Like us on Facebook: https://www.facebook.com/IronFX
• Follow us on Instagram: https://www.instagram.com/ironfx
• Follow us on LinkedIn: https://goo.gl/wSEbPN
• Follow us on Twitter: https://twitter.com/IronFXGlobal
• Circle us on Google+: https://www.google.com/+Ironfxglobal
• Subscribe to our Channel: http://bit.ly/1foFmCU
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