To the market's surprise, the RBA left rates unchanged in their meeting yesterday.
The AUD/USD popped up after the announcement, and seems to have held on to its initial gain. One reason for the decision to leave rates unchanged may be the fact that the RBA may have had a 'preview' of key leading economic numbers - scheduled to be released over the next days - that may be more optimistic than initially thought.
Australian quarterly GDP numbers out this morning came in at 2.5% year-on-year. Economists had expected a read of 2.6%. On Thursday, key monthly trade and retail sales numbers will be released. A flat or even more positive than estimated number may have swayed the RBA to hold off further cuts to rates for the time being.
Oil
The WTI oil picture looks interesting. On the one hand it seems to be struggling to form a higher low here which, if held, could propel the commodity back to the recent high of around $54. On the other hand, a pullback from these current levels could also see it complete a bearish wedge formation, which could see it test its late January lows of around the USD43.5 level.
It's certainly worth a watch.
