A$ Range Trading Ahead Of RBA Decision

Ahead of the RBA’s rate decision due at 1430 AEST, AUDUSD has been trading in a very narrow range. It reached an intraday low of 0.6621 followed by a high of 0.6641 and is currently trading around 0.6632. The USD index is down 0.1%.

• Aussie is down 0.2% versus the kiwi to 1.0727, as unlike the RBNZ, the RBA is expected to be on hold again. AUDJPY is stable around 91.15. AUDEUR is 0.1% lower at 0.6035 and AUDGBP is flat around 0.5305.
• Equities across the region are mixed with the Hang Seng down 0.5%, the ASX -0.2% but the Kospi +0.5%. The S&P e-minis are down 0.1%. WTI oil prices are down 0.2% to $75.64/bbl while Brent is flat at $79.30. Copper is 0.2% lower and iron ore is steady around $104.50/t.
• The RBA announces its rate decision later and is generally expected to leave rates at 3.6% but some are expecting a hike. See the MNI RBA Preview – May 2023 here. Governor Lowe will speak at the RBA Board Dinner in Perth today at 2120 AEST. It can be listened to live at this link.
• Later today April manufacturing PMIs in Europe print and preliminary April euro area CPI data. There are also US JOLTS job openings for March.