Written by Steven Dooley, Head of Market Insights, and Shier Lee Lim, Lead FX and Macro Strategist
Aussie falls to one-month lows
The Australian dollar was weaker overnight ahead of today’s Reserve Bank of Australia decision.
According to Bloomberg, of the 30 surveyed economists, only one forecaster is calling for the RBA to cut, with the other 29 expecting interest rates to remain on hold at 4.10%.
The RBA decision is due at 2.30pm AEDT with the governor Michele Bullock’s press conference at 3.30pm.
The AUD/USD was lower, falling 0.6%, with the pair dropping to the lowest level since 4 March.
Global markets stay volatile ahead of tariff deadline
US sharemarkets opened sharply lower overnight but then gained strongly throughout the session in a sign of the ongoing volatility in financial markets.
Last week, the S&P 500 and Nasdaq suffered their worst week since December, with markets on edge ahead of President Trump’s so-called “Liberation Day” of tariff announcements. President Trump has said he will announce further tariffs on 2 April (Thursday morning APAC time).
While equity markets rebounded, key FX markets were lower.
While the Aussie fell, the NZD/USD lost even more, down 0.7%.
The USD/SGD climbed 0.1% while the USD/CNH fell 0.1%.
Eurozone CPI due
In Europe, FX markets performed better with the GBP/USD down only 0.1% while the EUR/USD was flat.
Tonight, markets will be looking to Eurozone March CPI numbers.
The headline annual inflation number is forecast to fall from 2.3% to 2.2% while the core number is forecast to drop from 2.6% to 2.5% according to Bloomberg consensus numbers.
However, a higher inflation number could spark a further euro rally. The EUR has recently surged across APAC with the AUDEUR back near five-year lows overnight. Similarly, the NZD/EUR has also fallen to five-year lows while the EUR/SGD has climbed to eight-month highs.
Eurozone CPI is due at 8.00pm AEDT.
Aussie lower ahead of RBA
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 31 March – 4 April
All times AEDT
Have a question? [email protected]
*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
Leave a Reply