Asia FX Handover - RBA's Hold Gives Bears Sore Heads
Matt Simpson May 7, 2019 2:10 AM
A summary of news and snapshot of moves from today’s Asia session.
- AUD is today’s strongest major after RBA wrongfooted bears and held rates at 1.5%. Whilst they continue to remain optimistic with employment, it’ll be a key metric for Q2 and inflation expectations were lowered once more. RBNZ is up next.
The bulk of today’s data came from Australia, which kicked off with construction index PMI falling to 42.6, it’s fastest rate of contraction this year. Retail trade suffered its worst quarter in seven years and, whilst trade balance beat expectations, both imports and exports declined 2% YoY. Regardless, it was the RBA’s hold which sparked the volatility to the bull-camp’s delight.
- The US claim that China backtracked on ‘substantial commitments’ made during earlier talks, which is what prompted Trump to increase tariffs.
- Vice President Pence warned in a speech the US is preparing to sanction 25 members of Venezuela’s Supreme Court.
- Equities across Japan and South Korea traded lower as they returned from long holidays to play catch-up with sentiment. US futures have ticked cautiously higher although appear relatively unharmed by the US-China fallout.
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