Aussie Dollar Gains on Neutral RBA, Pound May Rise on Soft PMI

Talking Points:

  • Aussie Dollar rose after broadly neutral RBA process announcement
  • Gains competence simulate short-term dovish tinge bets and might shortly fizzle
  • Pound could arise if soothing PMI is seen assisting to alleviate Brexit rhetoric

The Australian Dollar rose after a RBA kept a executive money rate unvaried during a record-low 1.50 percent, as widely expected. The matter concomitant a proclamation was resolutely neutral, reinforcing a odds that a executive bank will sojourn on reason for some time yet. With that in mind, a currency’s slight uptick might simulate near-term bets on a some-more dovish tone. Significant follow-through seems unlikely.

UK Manufacturing PMI information headlines a comparatively pale European information docket. Expectations indicate to a slight negligence in a gait of factory-sector activity in Apr compared with a before month. UK mercantile news-flow has increasingly underperformed relations to accord forecasts given mid-February, hinting that analysts’ models are maybe overly confident and opening a doorway for a downside surprise.

The implications of a soothing outcome for a British Pound might be rather counter-intuitive. As noted previously, a markets are all though certain that a BOE is on reason for a foreseeable future. Indeed, a rate travel is not labelled in by 2018. With that in mind, signs of slack might infer understanding for Sterling if they assistance alleviate a tinge of Brexit rhetoricahead of a ubiquitous choosing in June.

What is many critical in moulding GBP trends by mid-year? See a forecast to find out!

Asia Session

Aussie Dollar Gains on Neutral RBA, Pound May Rise on Soft PMI

European Session

Aussie Dollar Gains on Neutral RBA, Pound May Rise on Soft PMI

** All times listed in GMT. See a full DailyFX mercantile calendar here.

— Written by Ilya Spivak, Currency Strategist for

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