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2/11/2021 Thursday

Key Data Being Released Today.

Tuesday

  • USD ISM Manufacturing PMI: exp. 60.4
  • AUD Cash Rate: exp. 0.1%
  • AUD RBA Rate Statement

The Aussie Dollar

Today is a big day for Aussie economic data, with the RBA announcement at 2:30PM AEDT, although the RBA no set to announce any changes to policy settings. The focus will be on the wording and guidance around the likely timing of the initial rate rise in the upcoming cycle. Currently, RBA guidance is: ‘will not increase the cash rate until actual inflation is sustainably within the 2 to 3 percent target range. The central scenario for the economy is that this condition will not be met before 2024.

Australian inflation unexpectedly soared in the third quarter of the year, with the RBA Trimmed Mean Consumer Price Index jumping to 2.1% from 1.6% in the previous quarter, pushing yields higher and fuelling speculation the central bank will have to raise rates much sooner than 2024

Market participants are now pricing in a rate hike for the final quarter of 2022, and Governor Philip Lowe may try to down talk such speculation.

It will be interesting to see how the market reacts to the RBA announcement as overnight Iron Ore has taken a massive 15% decrease, from 121.3 USD/T to 102.6 USD/T. So if the RBA announcement id bullish it could be dampened by this significant fall.

AUD/USD Daily Chart

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Major Global Markets

  • Stocks
    • S&P 500 closed at 4616
    • NASDAQ closed at 15903
    • ASX 200 closed at 7370
  • Currencies
    • AUD/USD – At the time of writing this report trades at 0.7521
    • AUD/JPY – At the time of writing this report trades at 85.79
    • AUD/CNH – At the time of writing this report trades at 4.8075
    • DXY (US Dollar Index) – At the time of writing this report trades 93.877
    • AUD/EUR – At the time of writing this report trades 0.6482
  • Bonds
    • US 10-year Bonds are currently at 1.561
  • Commodities
    • Iron Ore – Trading at USD/T 102.6
    • Gold – trading at USD/OZ 1791
    • Brent Crude Oil – Trading at USD/Bbl 84.52

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