RBA to remain on hold and maintain a neutral tone.

The RBA will announce its decision during the Asian morning Tuesday. It’s expected to stand pat. We share this view, and we expect the officials to maintain their overall neutral tone.

However, given the worse data lately, if there is a change in tone, it may towards a somewhat dovish narrative. Thus, if any major reaction in AUD, it may be negative.

Japan’s Tankan survey signals improved business sentiment.

The Tankan survey for Q1 showed improved business morale. All but one of the indices rose. JPY strengthened recently, perhaps due to Japanese firms repatriating funds (fiscal year ending).

It would be interesting to see if this move is reversed in coming weeks, as the fiscal year is over.

UK: Manufacturing PMI for March (08:30 GMT) is expected unchanged.

US: ISM manufacturing PMI for March (14:00 GMT) is forecast to decline, but to remain at an elevated level. The reaction in USD may be negative, but not major.

As for the rest of the week…

Tue: RBA rate decision, as noted above.
Wed: UK services PMI for March. From the US, ADP employment report and ISM non-manufacturing PMI, both for March. Also, FOMC minutes of the March policy meeting.
Fri: US employment report for March. Also, Canada’s employment data for the same month.

Register with FXGiants to receive their newsletters & stay on top of the market news.

FXGiants Official Website