Compass Global Markets' Blog

Market Update - 2nd May 2017 - All Eyes On RBA At 2.30PM, Will They Hike or Hold?

Posted by Patrick Downes on May 2, 2017 at 10:05 AM

The Aussie dollar has finally found a bit of support over the past 24 hours managing to make gains against all the majors as a result of rebounding commodity prices and settling of tensions around the Korean Peninsula. AUD/USD has rallied off the low 0.74's while AUD/GBP has rallied off the low 0.57's.

U.S manufacturing PMI showed slower than expected growth coming in at just 54.8 instead of market expectations around 56.6 and this weighed on the USD.

We have a very busy day today kicking off with Chinese manufacturing PMI at 11.45am following that all eyes will be on the RBA as they deliver their latest and greatest cash rate decision. The market is expecting no change to the cash rate from 1.5% but with all the talk of a very frothy and overheated property market I wouldn't put it past the RBA to raise rates by 25 basis points in an attempt to reign in any further appreciation in property prices.

DATA RELEASES TODAY:

CNY - Caixin Manufacturing PMI at 11.45am

AUD - Cash Rate & RBA Rate Statement at 2.30pm (AEST)

GBP - Manufacturing PMI at 6.30pm

AUD EXCHANGE RATES:

AUD/USD – 0.7479

AUD/GBP – 0.5786

AUD/EUR – 0.6851

AUD/NZD – 1.0830

AUD/JPY – 83.667

***Above rates are indicative wholesale rates and intended as a guide only***

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Patrick Downes

Senior Corporate FX Dealer

Compass Markets

Phone Patrick - 0431 278 632 

  Email Patrick: patrick@compassmarkets.com

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Topics: Market, Report

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