The Australian dollar sagged after RBA said at its statement that the exchange rate is still uncomfortably high and a lower level is necessary to support economic growth. The central bank also decided to maintain key interest rate steady at 2.50% in line with market participants’ expectations. The AUDUSD was limited yesterday by cap at 0.9521 and early today sank to 0.9461, falling by 0.63%. Despite recent drop yesterday gains are not all lost.
The US dollar in expectation of the main employment report on Friday, is relatively stable against the major currency pairs, however, the U.S. ISM non-manufacturing index on Tuesday may also have a significant impact . On Monday, some members of the FOMC announced that the Fed is not in a hurry to start reducing purchases of assets, and that " shatdaun " in the United States will not have a lasting impact on the economy. The U.S. dollar index rose from 80.49 to 80.60 in early trading . Against the Japanese yen, the dollar fell to 98.23 dollars on concerns about the achievement of inflation target of 2%. USDJPY currency pair remains in a narrow range of 98.82-98.23 .
On the other hand, the euro fell below 1.35 against the dollar to 1.3492 before the ECB meeting , and yesterday he was growing at improving the PMI. EURUSD is just a step away from the 7- week low , and its fall is fueled some rumors that the European Central Bank to ease monetary policy or announce new programs LTRO.
On the agenda this morning , we expect CPI from Switzerland, the UK PMI index and forecasts of the European Commission . Duringe the evening ISM non-manufacturing index , and then at night the employment report of New Zealand. Finally , Sandridge Energy is going to report the income (estimated at $ 0.02 per share).