- Minutes for RBA’s April monetary policy meeting released
- Prudent to wait for CPI but case can be made for easing if inflation data stays moderate
- Australian economic growth still above trend and China growth slowing but solid
- China Q1 FDI -2.8% YoY
- China MofCOM: Q2 trade will be better than Q1
- Japan FinMin Azumi: Japan will lend $60 billion to IMF
- Regional stocks pretty flat, Hang Seng -0.7%
- Gold $1653/oz; Oil $103/bbl
A very quiet session in Asia with the majors trading quietly in 30 pip ranges.
The market had expected a slightly dovish RBA and they got what they had expected, with the chances of a rate cut early next month now being quoted at around 90%. The AUD/USD had drifted lower pre-minutes and with the market already short, a brief dip was followed by some modest short-covering. All up, little change on the session. Ranges: 1.0320/63
USD/JPY has also been quiet in a 20 pip range. The equity markets gave little in the way of a lead and flows were also underwhelming. Range: 80.32/54.
EUR/USD closed in NY at 1.3130 and saw some modest profit taking in early Tokyo trade but has been overall very quiet in a 1.3104/37 range.
Cable 1.5877/1.5903; EUR/CHF 1.2012/21
