The UK Services PMI will be a tasty morsel as the pound has had several weeks of strong growth in which is closed higher against its main rivals as data contuse to surprise to the upside despite the recent dampness in sentiment that the BREXIT vote encouraged. Better than expected PMI data will see the GBP soar as UK indexes fall further.
In a month which will be dominated by Central Bank decisions and comments, all eyes will be focused on Australia as the AUD Cash Rate (expected unchanged at 1.5%) and the RBA Rate statement provide the days main meal, as we anticipate the CB will give its view on the current and future market conditions and give guidelines as to any action it might take given these views. Should the RBA surprise markets with a rate hike or the statement is bullish, we would see the AUD appreciate across the board. While a cut to rates or a pessimistic view by the RBA will see the AUD depreciate in value.
Today’s key economic data is as follows:
- G20 meeting
- Services PMI expected at 49.1
- Current Account expected at -20.2B
- RBA Rate statement
- Cash Rate expected unchanged at 1.50%