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RBA: Much has happened since the RBA Board’s last meeting 2 months ago - Westpac

Analysts a Westpac noted that Much has happened since the RBA Board’s last meeting 2 months ago, including Australia’s poor Q3 GDP data, 2 firm jobs report, devastating bushfires and the Wuhan coronavirus.

Key quotes

Westpac expects a steady cash rate at 0.75% after today’s meeting (2:30pm Syd/11:30am Sing/HK), having changed our view after the drop in unemployment in Dec.

This is also economists’ consensus view, though market pricing for a cut has ticked back up from about 10% after Q4 CPI data last week to 20% chance in response to market turmoil on the novel coronavirus.

 

EUR/USD Asia Price Forecast: Euro easing down after Friday’s surge

EUR/USD is trading in a weak downtrend below its main simple moving averages (SMAs) as the spot broke below an ascending trendline. The euro last Friday bounce
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Data pulses: Modest improvements in Europe and strong from USA – ANZ

Analysts at ANZ Bank summed up the data from overnight. Key notes Made in USA: The January ISM beat expectations, printing above 50 for the first time
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