RBA upbeat on labour market Data out of the US economic docket was positive yesterday, overall PMIs for the services sector were confirmed stronger than the earlier readings for the Month of April. The ISM Non-Manufacturing Composite rose to 55.2 from a previous 53.1 beating an expected 54.0 by a good margin. The positivity of the data helped risk appetite and consequently also drove demand for US equities higher that closed yesterday’s session in positive territory. The Asian session was mostly dominated by the Reserve Bank of Australia’s rate decision; the RBA opted to make no changes to its current policy rate of 2.5%.Major equity indices looked mixed on lower volumes with markets in Japan and Hong Kong, amongst other, closed for holidays. Amongst the major currencies this morning we see that the NZD continues garnering support even today and is amongst the best gainers so far. Tomorrow we are expecting the unemployment data for the first quarter, expectations are for the unemployment to have dropped to four-year lows. The Aussie managed highs of 0.93166 this morning, against the US dollar, after that the RBA left interest rate unchanged and sounded more positive on the labour market. Even the GBP attracted support as London makes a comeback after Monday’s market holiday and ahead of PMI services data for April that are expected to have risen further – the data will be released later this morning.
Posted on: Tue, 06 May 2014 08:00:06 +0000