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JPY Daily News
RBA Holds Rates Steady as AUD falls
The Reserve Bank of Australia held interest Rates steady at 4.75%, in line with consensus forecasts but the Aussie dollar dropped after the RBA was more negative than expected on the Australian economy and makes for a rate hike in the near-term less certain. The AUD fell versus both the dollar and the yen after the rate decision. The downbeat forecast of the Aussie economy is not such a surprise given yesterday's -0.6% contraction in May retail sales. The interest rate decision largely overshadowed the better than expected trade balance data which showed a widening trade surplus in the month of May due to a 3% increase in exports.
Rumors of a potential Chinese interest rate increase also weighed on the AUD. Comments yesterday from the Peoples Bank of China signaled inflationary pressures are still growing as the Chinese economy continues to expand. Though last Friday's weaker than expected manufacturing PMI did not derail growth expectations, it did increase the chatter of a possible hard landing for the Chinese economy.
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Print| # | Time | $€£¥ | Event | Per. | Prev. | Fore. | Act. | Imp. |
|---|---|---|---|---|---|---|---|---|
| 07/05 | ||||||||
| 02:30 | JPY |  Average Cash Earnings | y/y | -1.4% | -0.4% | 1.1% |  | |
