In their last statement, the RBA said they’d be keeping a close watch on the next CPI figures, due later this morning. After recent export prices and PPI data, the chances of a lower CPI seem to be increasing. This would of course increase the chances of a 25bps rate cut early next month.
The risk-off sentiment which we saw in Asia yesterday carried through into early European trade with AUD/JPY taking a bit of a hammering, but it has rebounded somewhat. EZ debt issues continue to hog the headlines and the EUR/USD is continuing stubbornly in its range trading mode.
Good luck today.
