Daily Update - 6th August 2019
Yesterday’s Market Yesterday’s Explained The Institute for Supply Management (ISM) said its non-manufacturing activity index fell to 53.7 from 55.1 the month before. A reading above 50 indicates expansion in the sector.The ISM services survey’s measure on new orders fell to 54.1 last month, its lowest since August 2016, from 55.8. A barometer on new export orders fell to 53.5 from 55.5 in June.The latest reading on services prices fell to 56.5 from 58.9. A lone bright spot was an uptick in the employment index, which moved up to 56.2 from 55.0. Today's Market • AUD RBA Interest Rate Decision Today's Focus RBA Interest Rate Decision is announced by the Reserve Bank of Australia. If the RBA is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the AUD. After two rate cuts, the Reserve Bank of Australia is likely to leave the interest rate unchanged at 1% now. Despite the Fed cut, Governor Phillip Lowe and his colleagues are set to pause and leave some ammunition for worse times. While the RBA would like to see a lower unemployment rate, inflation has come out above expectations and allows for higher rates.
