Currency Market Analysis

Sep 30, 2019 | Currency Market Analysis

Global Themes

Aussie at lows as markets look to RBA cut

The AUD remained on the edge of a move to new ten-year lows as markets look ahead to this week’s likely RBA rate cut.

The most recent market pricing signalled the market sees 75% chance of a Reserve Bank of Australia cut when the central bank meets tomorrow.

Greenback gains

In other markets, the US dollar remained well supported with the US dollar index at two-and-a-half year highs.

The British pound remained pressured after last week’s Supreme Court decision that ruled that the government’s move to suspend parliament was “unlawful”.

The euro was also heavy on Friday with the EURUSD falling to new two-year lows.

China in focus

Today’s focus is on China with official activity gauges for manufacturing and services due at 9.00am and the private sector Caixin manufacturing report due at 9.45am.

All of these measures have seen a steep decline over the last 18 months.

Over the weekend, the Peoples’ Bank of China indicated it was planning a further round of stimulus saying it will “continue to implement a prudent monetary policy and increase the strength of counter-cyclical measures”.

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