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RBA leaves rates unchanged

Daily Currency Update

Early this morning the Reserve Bank of Australia left interest rates unchanged for the third consecutive meeting. Markets expected the result and the statement from the RBA continues to suggest the central bank still has a tightening bias and will tighten further if needed. AUDUSD has moved down on the day losing over 1.35% in the build-up and post RBA decision. The mood for today is a risk-off appetite with the US Dollar being the best performer.

EUR/GBP seems to have recovered to regain losses made yesterday, this comes as ECB policymakers release mixed signals but seem to postpone the first-rate cuts to help the euro stay firm. This paired with diverse UK spending data and the threat of a looming UK recession helped the pair move up.

Key Movers

Both S&P Global/CIPS Services and Composite PMIs are releasing today which could give direction to Sterling. Later this morning markets expect the Eurozone's PPI to be released while in the US there is data for factory orders and durable goods.

GBP/USD has reached a multi-month low as Barclay card data suggests UK spending is deteriorating. The pair is currently down over 0.4% on the day and will gain further direction off the back of UK data this morning followed by the US this afternoon.

Expected Ranges

  • GBP/USD: 1.2545 - 1.2650 ▲
  • GBP/EUR: 1.1650 - 1.1715 ▲
  • GBP/AUD: 1.9500 - 1.9850 ▲
  • EUR/USD: 1.0745 - 0.0825 ▲