Local investors are looking at subdued trading today ahead of key market events this week. US shares fell after European gains, commodities are mixed and the USD lifted overnight despite some weaker US data. And by way of marking history as it’s made, the Chinese Yuan entered the IMF SDR basket of currencies, making it an official global reserve currency.
The RBA is not expected to move rates at its meeting today, but some inflation focussed analysts are pointing to the potential for a shift in language towards easing. This would likely support shares and see the AUD slip back below 72 US cents. However, given Governor Stevens “chill out” comments, and the clear indication of data dependency, no change and no impact remains the favoured runner.
Ahead of the afternoon call from the central bank, investors have a manufacturing index, October building approvals and Q3 net exports to consider. Yesterday’s stronger than expected inventory data means any increase in net exports beyond the forecast 1.2% will have economists increasing their estimate of the 2.3% increase in GDP released tomorrow.