JPY Daily News

RBA to go 3 for 3 on Interest Rate Cuts

As expected the Reserve Bank of Australia cut interest rates by 25 bp yesterday. This is the second consecutive reduction in the interest rate. The bank will next meet in February and there is the chance the RBA will go 3 for 3. Currently Australian interest rates stand at 4.25% and are still far above the rest of the major global economies, making the AUD an attractive currency. Traders should be concerned over slowing growth in China which is Australia's largest trading partner. The most recent HSBC services PMI dropped to 52.5 in November from 54.1. This is the slowest rate of growth for the survey over the past 3-months. The manufacturing PMI came in at 49, below the 50 boom/bust level and the lowest November 2008. However, with last week's cut in the Chinese reserve requirement it appears that Chinese officials are ahead of the policy curve and recognize the potential for lower economic growth. The AUD/USD maintains resistance at 1.0350 from the November 14th high where the 100-day moving average comes in.

Current Time: 05/26 22:56 GMT

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#	Time	$€£¥	Event	Per.	Prev.	Fore.	Act.	Imp.
12/07
	05:00	JPY	Leading Indicators		91.6%	91.8%	91.5%
	23:50	JPY	Core Machinery Orders		-8.2%	0.8%	-6.9%
	23:50	JPY	Current Account		1.19T	0.54T	0.52T