IronFX Daily Commentary by Sakis Paraskevov | 03/11/2015
November 3, 2015 10:15 am
Main points for Today
• RBA keeps interest rates on hold • The Reserve Bank of Australia kept official interest rates unchanged amid signs of improvement of business conditions over the past year and a somewhat stronger growth in employment. • It signalled however that low inflation may afford scope for further easing of policy. • Although the RBA adopted an easing bias compared to the neutral stance in the last few meetings, the prospects for an improvement in economic conditions had firmed a little. • In the statement accompanying the rate decision, the Bank said that “inflation is low and should remain so”, therefore the prospects of a cut at their Dec. meeting is still on the table. • It will be important to see how much the underlying inflation is lowered in the Bank’s Monetary Policy Statement to be released on Friday, to better assess the future path of policy. • AUD/USD plunged ahead of the release and surged afterwards as the Bank kept rates on hold. The shift to an easing bias and the prospects of a rate cut is likely to put AUD under renewed selling interest in the near future, in my view. • Today: • UK: Construction PMI for October. Following the strong manufacturing PMI on Monday, another positive surprise in the construction index is likely to add to evidence that the UK economy started to improve in Q4 and could support GBP. • US: Factory orders for September are expected to have fallen again, but at a slower pace than in August. • New Zealand: Employment report for Q3. The forecast is for the unemployment rate to increase a bit, which could put NZD under renewed selling pressure. • Speakers: ECB President Mario Draghi and SNB Chairman Thomas Jordan.
Main points for Today
• RBA keeps interest rates on hold
• The Reserve Bank of Australia kept official interest rates unchanged amid signs of improvement of business conditions over the past year and a somewhat stronger growth in employment.
• It signalled however that low inflation may afford scope for further easing of policy.
• Although the RBA adopted an easing bias compared to the neutral stance in the last few meetings, the prospects for an improvement in economic conditions had firmed a little.
• In the statement accompanying the rate decision, the Bank said that “inflation is low and should remain so”, therefore the prospects of a cut at their Dec. meeting is still on the table.
• It will be important to see how much the underlying inflation is lowered in the Bank’s Monetary Policy Statement to be released on Friday, to better assess the future path of policy.
• AUD/USD plunged ahead of the release and surged afterwards as the Bank kept rates on hold. The shift to an easing bias and the prospects of a rate cut is likely to put AUD under renewed selling interest in the near future, in my view.
• Today:
• UK: Construction PMI for October. Following the strong manufacturing PMI on Monday, another positive surprise in the construction index is likely to add to evidence that the UK economy started to improve in Q4 and could support GBP.
• US: Factory orders for September are expected to have fallen again, but at a slower pace than in August.
• New Zealand: Employment report for Q3. The forecast is for the unemployment rate to increase a bit, which could put NZD under renewed selling pressure.
• Speakers: ECB President Mario Draghi and SNB Chairman Thomas Jordan.
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