The Reserve Bank of Australia left the cash rate unchanged today at a 49 year low of 3.0% as most expected, as well the Aussie Dollar hit a seven month high of 0.7426 leading up to the non-event. The AUD/USD continued its magnificent run into the Asia session, driving 40 pips or so from the open to touch the high before a wave a profit taking took back some of the gains, dropping the pair to the session low of 0.7376 before the rate decision blew some wind back into the Aussie's sails.
Profit taking coupled with news that as many as 10 of the 19 ''stress test'' banks in the US may need additional capital to carry on helped drop the Euro and the British Pound from session highs as well. EUR/USD dropped from highs of 1.3438 to levels close to 1.3364 as London traders rolled in for the day. The GBP/USD pair was in the same boat, dropping from 1.50460 highs, to current levels just under 1.49900. USD/JPY moves favored the yen, drifting from 98.96 levels to lows of 98.62 later in the day. EUR/JPY dropped as well, in this case from 132.75 to levels close to 131.85. It will be interesting to see if the recent rally in riskier assets can remain unscathed through Thursday's ''Stress Test'' results.....
Upcoming Economic Data Releases (London Session) prior expected
| 5/5/2009 | 5:45 | SZ | SECO Consumer Climate | APR | -23 | -25 |
| 05-08 MAY | MAY | UK | Halifax House Prices sa (MoM) | APR | -1.90% | -1.00% |
| 05-08 MAY | MAY | UK | Halifax House Price 3Mths/Year | APR | -17.50% | -17.50% |
| 5/5/2009 | 7:30 | EC | EU Finance Ministers Hold Meeting | 5-May | ||
| 5/5/2009 | 8:30 | UK | PMI Construction | APR | 30.9 | 31.9 |
| 5/5/2009 | 9:00 | EC | Euro-Zone PPI (YoY) | MAR | -1.80% | -2.90% |
| 5/5/2009 | 9:00 | EC | Euro-Zone PPI (MoM) | MAR | -0.50% | -0.50% |
