Reserve Bank of Australia remains on hold

•     Reserve Bank of Australia remains on hold

•      RBA kept the official cash rate unchanged at 2.50%, as was widely expected

•      This month the members dropped the line that the rate “remains high by historical standards,” and went back to saying that the exchange rate “remains above most estimates of its fundamental value.”

•      Following the recent data on prices, the Board members showed confidence that inflation will continue to run between their 2%-3% target

•      On the other hand, they kept their concerns over the labor market

•      As for the country’s data releases, trade deficit widened more-than-expected in September while retail sales for the same month accelerated beating market estimates

•      With no other major economic releases overnight, USD kept its strength against most of its peers. Lower only against EUR, CHF and GBP.

•     Today:

•      Eurozone: PPI for September is expected to fall at an accelerating pace indicating that the deflation risk persists in the region

•      UK: Construction PMI for October

•      US: Factory orders and trade balance, both for September

•      New Zealand: The Q3 unemployment rate is anticipated to decline somewhat, while the participation rate is expected to increase and average hourly earnings are forecast to accelerate. Could be NZD-positive