Forex Marketz Daily Forex News – Fully Markets Update
AUD/USD (0.7265)
Points consider in this Forex market:
- Economic data from China and Australia hit the wires this morning. Both the Australian current account and PMIs from China.
- Looks like the Reserve Bank of Australia (RBA) will not cut rates.
- The AUD/USD rallies higher before this week’s RBA monetary rate decision.
The AUD/USD Forex market rallied after the Australian Bureau of Statistics showed that their country’s deficit narrowed from A$20.5 billion in the second quarter to A$18.1 billion in the third quarter. Exports, the more important number, added 1.5 percent to the country’s gross domestic product (GDP). This beat forecasts for a print of 1.2 percent. Traders were very pleased with this report which seemed to negate the negative feelings about a slowdown in China.
China’s Economic Data is Mixed
China also released data at about the same time. Their non-manufacturing PMI for November came in at 53.6. This beat the print in September at 53.1 and showed faster service sector growth in China’s northern regions. The manufacturing PMI came in low at 49.6. Estimates were for a print of 49.8. The AUD/USD briefly paused its rally to move lower but eventually, rallied to move higher. The data seemed to fuel the rally with the Australian Dollar against its US Dollar counterpart.
Will the RBA Make a Rate Move?
This data, and its positive nature, is decreasing investor bets that the RBA will slash interest rates at its looming monetary policy meeting this week. Also, traders should consider that there is a priced-in probability for a rate cut already in the AUD/USD. That is around 25 basis points (bps) that there is around a 64 percent chance that the RBA will cut rates within the next 12 months. This is near a four month low.
