Forex Today: AUD unfazed by non-event RBA, a busy calendar ahead

A quiet Asian session today, with virtually no reaction witnessed on the Aussie after the RBA left interest rates unchanged at a record low of 1.5%, as it was already well priced-in by markets. While NZD experienced quite a stir, and staged a solid recovery post-RBA decision. While the yen remained unperturbed by a disappointment in the cash earning data, and kept the bid tone intact against greenback almost throughout the Asian session.

Focus now shifts towards the German factory orders data lined up for release ahead of the European open, while during the European session, we have the Eurozone GDP revision and Eurogroup’s EcoFIn meetings.  

Markets will also look forward to the trade numbers from both the North American economies, while factory orders data from the US will remain the key event for the USD price-action today.

Besides, Fonterra’s fortnightly dairy auction results are also on the cards, with analysts at Westpac expecting, “tonight futures pricing WMP to rise 4% to around $3500/t. That would extend the 81% gain since Feb 2016."

Main topics in Asia

Japan to issue deficit-covering bonds to offset shortfall in tax revenue this FY - RTRS

Reuters reports headlines from the Japanese government sources, citing that Japan is expected to issue deficit-covering bonds for JPY 1.9tln to offset shortfall in tax revenue this fiscal year (FY).

Westpac, NAB downgrades Australian Q3 GDP forecasts

A couple of leading Australian banks have lowered their forecasts for Australia’s Q3 GDP, as we head towards the GDP release due tomorrow in the Asian morning.

RBA keeps rates at 1.5%, consistent with sustainable growth in the economy

At its meeting today, the RBA Board decided to leave the cash rate unchanged at 1.5 per cent, noting that "taking account of the available information, and having eased monetary policy earlier in the year.

USD/CNY: Yuan hits fresh 3-week highs as PBOC lifts Yuan fix

The Chinese currency jumped higher versus its US counterpart, dragging USD/CNY to the lowest levels in three-weeks after the PBOC stalled devaluation today and instead lifted the Yuan reference rate slightly higher.

Key focus for the day ahead

EUR/USD side-lined near 1.0750 ahead of German data

The bulls take a breather from the recent upsurge, allowing a brief phase of consolation in the EUR/USD pair near the mid-point of 1.07 handle, as markets now await the German data for fresh impetus on the euro.

Kazakhstan EnergyMin: Will attend OPEC/non-OPEC producer meeting in Vienna

Reuters reports remarks from Kazakhstan energy minister, as he shows willingness to attend OPEC and non-OPEC producers meeting scheduled later this week.

Bloomberg Survey: ECB to announce extension of QE at its Dec 8 meeting

According to a latest Bloomberg survey, a majority of the economists believes the ECB will announce an extension of asset purchases on Thursday at the current pace of 80 billion euros ($85 billion) a month.

RTRS Poll: China Nov data to show steady growth, but yuan, capital controls a worry

A string of key economic data from the Chinese economy is lined up for release later this week, with most analysts expecting the China data dump to show steady pace of economic expansion.