May 2, 2019 — 3 min read
The AUDUSD opened lower at 0.6997, the NZDUSD opened lower at 0.6617 this morning.
The AUD and NZD continued to track lower on the back of USD strength, after the US Federal Reserve Chairman Jerome Powell said yesterday that factors weighing on inflation might be “transitory” and that he saw no case for an interest rate move in either direction.
The Reserve Bank of Australia has a Cash Rate decision on Tuesday 7th May. It will be a close run decision on whether they lower interest rates from an already record low of 1.50% at this meeting, or leave it until after the election.
Adding to the cautiously bearish tone for the NZD is the real possibility the RBNZ will cut the Official Cash Rate by 0.25% at its meeting on Wednesday 8th May. The OCR currently stands at 1.75%.
The GBP fell after the Bank of England raised its growth forecasts but warned that Brexit uncertainty continues to cloud the outlook for monetary policy. The BoE voted to keep interest rates steady at 0.75%.
There are no data releases scheduled on the domestic calendar today. The highly influential and closely watched US non-farm payrolls employment figures hit the wires tonight, coupled with a series of US Fed members giving speeches.
Global equity markets were lower on the day - Dow -0.5%, S&P 500 -0.3%, FTSE -0.5%, DAX +0.0%, CAC -0.9%, Nikkei -0.2%, Shanghai +0.5%. Gold prices were dropped 0.1% at USD$1,271 an ounce as the USD rallied. WTI Crude Oil prices plunged 3.3% to US$61.63per barrel on ballooning US crude stockpiles and higher-than-expected Russian production.
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