U.S. Stocks Rebound as Chinese Yuan Stabilizes

Daily Update - 7th August 2019

Yesterday’s Market

• AUD RBA Interest Rate Decision

Yesterday’s Explained

AUD/USD clings to gains as RBA offers no policy change

With the RBA refraining from fresh rate cut clues, the AUD/USD pair remains positive around 0.6780 ahead of the European market open on Tuesday. The Reserve Bank of Australia (RBA) match broad market consensus while holding its monetary policy unchanged, which offers a 1.0% interest rate. The central bank refrains from supporting further rate cuts while leaving the door open based on future growth conditions. Earlier during the day, upbeat trade balance data for June also pleased Aussie buyers.

Market risk sentiment has been wild since Asian morning as the US-China trade tussle took a step further after the US termed China as a currency manipulator. Further, the dragon nation feared the US testing intermediate missiles and warned to retaliate while also criticizing the Trump administration’s behavior on trade/political issues.

 

Today's Market

• NZD RBNZ Interest Rate Decision

Today's Focus

RBNZ Interest Rate Decision is announced by the Reserve Bank of New Zealand. If the RBNZ is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the NZD.

The Reserve Bank of New Zealand rate decision significantly depends on the jobs report, but there is a substantial chance that Governor Adrian Orr and his colleagues will cut interest rates after May’s 25bp reduction from 1.75% to 1.50% and the pause in June. The RBNZ will have responded to recent trade tensions and the Fed’s rate cut, as well as some domestic concerns.