- The Reserve Bank of Australia’s meeting minutes confirm a more hawkish tilt in monetary policy, with the Bank having considered a 0.50% hike at its previous meeting. The minutes noted expected further hikes over the coming months and that the Cash Rate remains relatively low. Despite this, the AUD/USD currency pair is trading lower and looking bearish.
- Stock markets are mostly lower today. The S&P 500 Index made a golden cross the week before last. This is typically a strong long-term buy signal, although the price has fallen since then.
- The US Dollar is strong and a little higher, as US treasury yields continue to climb. The 2-year treasury yield is close to its long-term high level. The Swedish Krona is the weakest major currency today.
- Some commodities are performing quite well, with some continuing to rise after having recently made significant bullish breakouts, notably Sugar and Cocoa.
- There will be a release later today of important Canadian CPI (inflation) data, which is expected to show a slight decline based upon a month-on-month change increase of 0.7%.
- Tomorrow brings the RBNZ’s Cash Rate and Monetary Policy Statement release.
- Three more minor, but significant, data releases are due today:
- US Flash Services PMI
- UK Flash Manufacturing & Services PMI
- Australian Wage Price Index
- Daily confirmed new global coronavirus cases decreased last week for the eighth consecutive week.
- Total confirmed new coronavirus cases worldwide stand at over 678.8 million with an average case fatality rate of 1.00%. Daily new confirmed cases have fallen to a low level not seen since May 2020, just after the start of the pandemic.