The RBA acted as expected yesterday and cut the Australian Cash Rate by 25 basis points to 1.5%. The initial move from the AUD was as expected where we saw a slight sell off as markets fully priced in the cut and the RBA hinted that lower rates would not fuel a housing price bubble, implying that their was more room for further cuts. However, the selloff was short lived and the AUD pairs stabilized with the help of rising commodity prices.
Today’s key economic events are as follows:
- Construction PMI expected at 44.2
- Core PCE Price Index m/m expected at 0.1%
- Personal Spending m/m expected at 0.3%
- GDT Price Index previously at 0%
- Caixin Services PMI expected at 52.9