ECB raises interest rates by 25 basis points
 |
AU Trade Balance out at -$965m vs -$900 forecast |
| |
Crude oil continues to rise to US$145 a barrel |
| |
US 4th of July Public Holiday today |
Market Update
Overnight the AUD/USD dropped slightly despite US Nonfarm Employment data showing their sixth consecutive straight drop. The ECB raised interest rates by 0.25% to a seven year high of 4.25%. However less than hawkish comments from European Central Bank president Jean–Claude Trichet pushed the Euro down as the market factored in a more neutral stance on monetary policy.
Yesterday Aussie Trade Balance data was released showing a -$965m deficit opposed to a -$900m forecast. This data was on par with expectations and the Aussie had a tight trading range with little volatility.
Crude oil prices continue to rise touching US$145 a barrel with analysts believing it could quickly break through the $US150 a barrel mark. Continued price pressure from crude oil will continue to place upward pressure on inflation for the global economy.
Today's domestic session is expected to remain tight hovering around the high 0.95 range as no major data is released and the US breaks for their 4th of July public holiday.
Trading Range
0.9550 - 0.9620
Current Weeks Releases
| Local Data |
Due |
Exp |
Prev |
|
NZ Business Confidence
|
Mon |
- |
-.47 |
| AU Cash Rate |
Tue |
7.25% |
7.25% |
| AU RBA Interest Rate Statement |
Tue |
|
|
| AU Building Approvals |
Wed |
-3.3% |
7.8% |
| AU Retails Sales m/m |
Wed |
0.1% |
-.02% |
| AU Trade Balance |
Thurs |
-1.0B |
-1.0B |
| International Data |
Due |
Exp |
Prev |
| CAD GDP m/m |
Mon |
.3% |
-.2 |
| USD ISM Manufacturing Index |
Wed |
48.6 |
49 |
| US Nonfarm employment |
Thurs |
-20K |
40K |
| US Unemployment Rate |
Fri |
5.4% |
5.5% |
| US ISM Non-Manufacturing |
Fri |
51.1 |
51.7 |
| EUR ECB Press Conference |
Fri |
|
|
|
