Headlines:
- A slight setback for the aussie on the RBA decision
- RBA leaves cash rate unchanged at 4.35%, as expected
- RBA's Bullock: Rates are at the right level to get inflation back to target
- RBA's Bullock: We might have to hike rates if inflation takes markedly longer to fall
- BOJ governor Ueda says had regular exchange of views with Japan PM Kishida
- Japan business federation chairman says USD/JPY above 150 is too much
- Eurozone March retail sales +0.8% vs +0.7% m/m expected
- Germany March industrial orders -0.4% vs +0.4% m/m expected
- Germany March trade balance €22.3 billion vs €22.2 billion expected
- Germany April construction PMI 37.5 vs 38.3 prior
- France March trade balance -€5.5 billion vs -€5.2 billion prior
- UK April construction PMI 53.0 vs 50.2 expected
- UK April Halifax house prices +0.1% vs -1.0% m/m prior
Markets:
- NZD and USD lead, JPY lags on the day
- European equities higher; S&P 500 futures flat
- US 10-ear yields down 2.6 bps to 4.463%
- Gold down 0.3% to $2,315.42
- WTI crude down 0.3% to $78.24
- Bitcoin up 0.9% to $63,848
The RBA policy decision was the main highlight in the handover from Asia to Europe today. The central bank did not produce a hawkish tilt, keeping a more or less similar stance to March. They did continue to leave the door open for rate hikes though, so that is limiting any major fallout in the aussie.
AUD/USD fell from 0.6625 to 0.6600 on the decision before easing slightly more to 0.6590 amid a steadier dollar. But the pair is now trading back to 0.6605, down 0.3% on the day.
Meanwhile, USD/JPY was hovering around 154.60 after rising in Asia trading before slipping to 154.00 during the session. The pair did bounce back though, now seen around 154.40-50 levels - up 0.4% on the day.
Besides that, the dollar held steadier in general throughout with little else to work with. EUR/USD is stuck within a 20 pips range, keeping little changed at 1.0760 levels mostly. Then, GBP/USD is down 0.2% to 1.2540 and USD/CAD up 0.1% to 1.3680 on the day.
In the equities space, European stocks are benefiting further from the Wall Street rally yesterday. But US futures are more muted, keeping flattish as we look towards US trading later.
In other markets, bond yields are staying in retreat while gold is also marked down slightly amid more of a push and pull this week for the precious metal.
