RBA Meeting Minutes in Focus Today
AUD
The AUD had a subdued session of trade overnight after the recent Queen’s Birthday long weekend and a lack of significant data, trading within tight ranges across all major currency pairs. Local Equities were trading similarly, Nikkei posting a gain of 0.7% while the Shanghai Comp had no movement at 3590 Points. Meanwhile, Gold edged lower, bottoming for the day at $1,844.34, its lowest in two months, weighing on the Aussies demand. Today the RBA will release the Minutes of its latest meeting at 11.30am, at the same time but watched less closely will be the Q1 House Price Index. The main event locally for the week will be Thursday's employment data, markets are expecting the Unemployment Rate to remain steady at 5.5%.
USD
The AUDUSD pair is hovering a few pips up above the 77 handle, currently trading at 0.7712 at the time of writing. After a quieter start to the week, the S&P 500 managed to post minor gains, closing at a new all-time high, the Nasdaq also posting modest gains, while the Dow Jones was down -0.2%. Markets in a holding pattern ahead of the FOMC meeting tomorrow night, although US retail sales for May will be released this evening which should provide insight into the magnitude of any decline in goods consumption amidst re-openings.
EUR
The AUDEUR is just a touch lower than the levels we were seeing yesterday, currently trading at 0.6361 at the time of writing. European indices had a mixed session with the DAX down -0.1% while the CAC posted a gain of 0.2%. Little in the way of European economic data today and indeed for the week ahead, the AUDEUR pair have been in a holding pattern ahead of this week's FOMC meeting. ECB’s President Christine Lagarde has reiterated her stance that more accommodation is needed and similar to the Fed, they intend on holding off on tapering its bond buys for now. While that is a negative for the EUR, it seems expected and threrefore priced in.
GBP
The AUDGBP traded similar to it peers above, with the pair currently trading pretty flat at a rate of 0.5465 at the time of writing. The FTSE was in the black but entertainment and travel stocks were performing poorly ahead of the anticipated announcement of “Freedom Day” being delayed by 4 weeks following a recent spike in Covid cases. PM Boris Johnsons later confirming that UK Lockdown is to be extended by an extra 4 weeks. Some data on the docket today, with the UK Unemployment due today and BOE Governor Bailey speaking this evening.
NZD
The AUDNZD pair posted a minor loss over the last 24 hours but still trading near 3 week highs, currently trading at 1.0792 at the time of writing. No-noteworthy local data on the docket today, markets and traders awaiting this week’s FOMC meeting and Retail Sales figures this evening from the US.