A snippet on the Reserve Bank of Australia and the Australian dollar.

This via Bank of Montreal:

  • inflation indicators … not just well below expectations but also well below (the RBA's) 2-3% target range.
  • That's only added fuel to the rate cut speculation fire. However, with markets now fully pricing in one cut from the RBA and almost one more, it's possible that the worst may be over for the Aussie dollar, particularly given recent signs of improvement within the Chinese economy

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And, speaking of China, key data is due today, the April official PMIs as well as the private survey manufacturing PMI.

Official PMIS due at 0100GMT

  • Manufacturing, expected 50.5, prior 50.5
  • Non-manufacturing, expected 55.0, prior 54.8
  • Composite, prior 51.0

Caixin/Markit manufacturing PMI due at 0145GMT

  • expected 50.9, prior 50.8