RBA minutes gives AUD a bid ahead of ZEW Index

<p>The RBA minutes revealed a slightly more hawkish stance than the market had expected after the decision not to cut rates. The Australian Central Bank […]</p>

The RBA minutes revealed a slightly more hawkish stance than the market had expected after the decision not to cut rates. The Australian Central Bank kept an easing bias but signalled they were generally happy to keep rates on hold whilst they assess the full effects of the existing rate cuts they have made on the domestic economy.

The NZD also saw some volatility as rumours circulated in the FX space that China had destroyed contaminated imported milk powder from New Zealand but this was quickly denied by the dairy board Fonterra.

JPY strengthened overnight after Japan’s Chief Cabinet Secretary Yoshihide Suga said today that the BoJ governor nomination will not be made until after PM Abe’s trip to the US (after 22 February). There seemed to be a contraction made to comments from PM Abe over the weekend when deputy PM Aso said that the government was not considering buying foreign bonds (Abe said buying foreign bonds was one option).

Markets are expecting an improvement in the German ZEW survey this morning, with that NAHB Housing Index in the US the only distraction from the US this afternoon.



Supports 1.3310-1.3230-1.3160 | Resistance 1.3420-1.3460-1.3520


Supports 93.20-92.80-91.40 | Resistance 94.30-95.00-96.20


Supports  1.5440-1.5395-1.5260 | Resistance 1.5520-1.5575-1.5640


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