4 Feb 2014
European open: major shift in RBA stance
FXStreet (London) - The big news of the overnight session was the Reserve Bank of Australia rate decision. Although the RBA kept rates held at 2.5 percent as expected, it shifted its tone drastically, removing its easing bias and emphasis on the AUD being “uncomfortably high” unlike in previous months.
In place of easing bias, the statement accompanying the rate decision said that there is “likely to be a period of stability in interest rates”. The shift in language from the RBA jawboned the AUD, climbing 1.62 percent to USD0.8893.
In the UK this morning, construction PMIs are expected to decline to 61.5 from December’s 62.1 reading, remaining in extremely strong growth territory.
Richmond Fed Chairman Jeffrey Lacker and Chicago Fed President Charles Lacker are both set to speak today but focus will remain on Friday’s non-farm payroll numbers. After a second round of quantitative easing tapering, the Fed will be hoping to see a resurgence in jobs numbers after last months disappointing 74k print. Consensus expectations are for a 185k print.
In place of easing bias, the statement accompanying the rate decision said that there is “likely to be a period of stability in interest rates”. The shift in language from the RBA jawboned the AUD, climbing 1.62 percent to USD0.8893.
In the UK this morning, construction PMIs are expected to decline to 61.5 from December’s 62.1 reading, remaining in extremely strong growth territory.
Richmond Fed Chairman Jeffrey Lacker and Chicago Fed President Charles Lacker are both set to speak today but focus will remain on Friday’s non-farm payroll numbers. After a second round of quantitative easing tapering, the Fed will be hoping to see a resurgence in jobs numbers after last months disappointing 74k print. Consensus expectations are for a 185k print.