Golden week takes a break with Japan and China back at work and we have the RBA decision and Chinese official PMI to look forward to.
The RBA signposted at their last meeting that they would cut rates if CPI came in at the bottom end of expectations, which it did. Central banks usually stick to their word so I think a 25bps cut is a foregone conclusion and the market will hang on the statement for talk of further cuts.
The Chinese stats official will stick a cold finger out the window to see what way the wind is blowing, and then come up with an ‘official’ PMI figure. It will probably move the market but don’t base any long-term plans on it!
Good luck today.
