RBA Decision in Focus
In Asian trade, market players are waiting for the decision of the Reserve Bank of Australia. The latest poll of currency analysts is predicting that the RBA is likely to once again lower its cash rate by 25 basis points to 0.75%. The poll respondents also expect that the RBA statement could hint at another rate reduction early next year in the face of a struggling economy and lackluster inflation. Analysts say that the repercussions of the trade rift between the US and China continue to weigh heavily on economies reliant on trade, like Australia and New Zealand.
The AUD/USD and NZD/USD were trading at $0.6756 and $0.6261, a gain of 0.0622% and 0.0895%, respectively, as of 9:54 am in Tokyo. The USD/JPY was higher at 108.1520 Yen, up 0.0740%, off the earlier high of 108.177 Yen.
German Economy a Concern
The Euro has been flirting with a 2-year trough against the greenback on news that the Eurozone's largest economy is weakening. The statistical office of the EU reported on Monday that the preliminary results for Germany's harmonized index of consumer prices fell in September on a year-over-year basis to 0.9%, from an expected flat reading of 1.0%. Earlier in the day, Germany's retail sales showed an unexpected decline in August both on a month-over-month and year-over-year basis, coming in at 0.5% and 3.2%, respectively, against 0.6% and 3.3%, respectively. The EUR/USD is trading at $1.0894, down 0.0367%.