During today’s Asian session the most important event was publication of the decision of the monetary Reserve Bank of Australia. It was accompanied by a statement of the RBA regarding the present and the future monetary policy of the bank. Both publications did not surprise investors and can say that their shape exactly met earlier assumptions of the market. What else happened during the last hours and what to look for coming hours? About this in the morning review of the market
The night volatility of AUD is noticeable on the chart, but not surprising with its size. Sufficient is to say that practically all the bullish moves which took place just before and after publication of the RBA was in the morning abolished by supply. The effect of activities of the central bank of Australia is that the AUD/USD starts European session from small 0.17% declines:
RBA, as expected, left rate spot, unchanged at 1.5%. As usual in the case of publications of central banks, we have compiled the most important points of the statement, presenting them below:
- stronger AUD will complicate the return of economic indicators at the desired levels,
- global macroeconomic conditions have improved noticeably.
- the level of inflation may remain at lower levels for some time,
- The Chinese economy is definitely stronger in the second half of 2016
despite this, medium-term risk factors for the further expansion of China’s economy are still alive,
- higher prices of raw materials support the Australian economy,
- CPI should return above 2% this year, like GDP growth, which is to return to reasonable levels in the fourth quarter of this year.
Commentators believe that today’s RBA statement belonged to the more hawkish. Bulls can enjoy the fact that the Bank did not record a decline in core inflation that took place in the fourth quarter of last year. RBA statement also confirms the conclusions to which yesterday came analysts UBS.
What to pay attention to ?
Today’s session will be a little richer in terms of number of macroeconomic publication than on Monday. Already at 9:30 am we will know the first reports from the UK – there will be published index prices Listings Halifax.
Much more interesting reports will be made public in the afternoon. The session will start US trade balance and data series from Canada. About 14:30 we will know report on the number of building permits issued in December, and Canadian trade balance.
At 16:00 we will follow the December report Jolts. The forecast value of the index have adopted a value slightly higher than that published in the last year – 5.57 million to 5.52.
16:00 This is also the moment of the publication of the Canadian Ivey PMI. Forecasts indicate that in January this indicator fell to 58.3 against the previous 60.8.