AUD/USD Breaks Above 0.7400 Handle
Talking Forex | Aug 04, 2015 10:51AM ET
AUD has seen strength throughout the day after the RBA rate decision, which saw the central bank keep rates on hold despite suggestions by some analysts that a rate cut was possible, while the central bank also dropped comments that further falls in AUD are 'likely and necessary'. The strength in AUD was further supported by Australian retail sales (0.7% vs. Exp. 0.4%) and trade balance data (-2933mln vs. Exp. -3000mln), which both beat expectations, seeing AUD/USD break above the 0.7400 handle.
Other notable data points of the session included US factory orders (1.80% vs. Exp. 1.80%), UK Construction PMI (57.1 vs. Exp. 58.5) and Fonterra's Global dairy trade price index (-9.3%) as well as the RBI rate decision, where the central bank kept rates on hold; however, none of these saw a sustained reaction in USD, GBP, NZD or INR respectively, with volumes generally fairly light today.
Looking ahead, tomorrow sees services and composite PMIs from Japan, China, France, Germany, Eurozone, UK and US, with Caixin services and composite PMIs also coming from China. Participants will also be keeping a close eye on tomorrow’s US ADP Employment Change ahead of the US Nonfarm payroll report on Friday, with some suggesting the monthly jobs data will take on extra significance this month considering the data dependency of the FOMC.
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