Author: Rowan Murphy
Last night the Bank of England unanimously decided to leave their rates on hold, giving yet another signal to the market that they may be through with cuts. Locally the Aussie is getting squeezed lower against the dollar as markets re-adjust their interest rate expectations post the FOMC decision yesterday and ahead of the RBA on Tuesday. The widening spread between AU and US interest rates continue to be one of the major influences on the pair. Australian new Building approvals for March are out at 11.30am AEST and, for at least the short term, I would expect to see more blood in the water with any disappointing Australian releases.
Market’s focus however should be on US Unemployment data, ISM Non-Manufacturing PMI and the five FOMC members speaking at various events tonight though.
Next week is light on in regards to international data releases until the back end, but locally we have retail sales and the RBA on Tuesday with the market tipping a 50/50 chance of a cut at the moment. And NZ Rate decision on Wednesday any disappointment in AUD data will be treated harshly.
I am expecting longer term support levels to be challenged
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