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ForexLive Asia FX news wrap: RBA SLASHES inflation forecast

Forex news for Asia trading Friday 6 May 2016

The Reserve Bank of Australia released their latest quarterly Statement on Monetary Policy (SoMP) today. In these statements they often tinker with their forecasts, a nudge here, a tickle there. Not today.

Today they slashed their near-term inflation forecast; from previously expecting core inflation at 2 to 3% at the end of 2016 to 1 to 2% now. There is more in the bullets, above.

  • RBC has brought forward their call for an RBA cut from August to June
  • Macquarie have responded quickly, they were calling for a further RBA rate cut in November of this year but have brought that call forward to August.
  • BNP are calling for a June cut (from August prior)

On the release of the RBA's Statement the AUD/USD was marked lower immediately, dropping 40-odd points from around 0.7460 just prior to the release. It fell further from there.

NZD/USD followed along (not to the same extent), trading under 0.6870 but holding around 0.6850 as of writing.

Hourly AUD/USD chart as I update

Elsewhere it was a bit of a pre-NFP snoozer. USD/JPY had a little movement, ticking a few points higher as Tokyo got underway after a 3-day holiday, but it soon rejected 107.40, trading lower to be around 107.10 as I write.

EUR, CHF and GBP are all little changed.

Gold has edged higher, very small, while oil is down a few cents on the session.

Regional equities:

  • Nikkei -0.83%
  • Shanghai -1.85%
  • HK -1.3%
  • ASX -0.48%

Still to come:

More:

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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