6 things Australian traders will be talking about this morning

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Good morning.

To the scoreboard:

  • Dow: 24,163.15 -148.04 (-0.61%)
  • S&P 500: 2,648.05 -21.86 (-0.82%)
  • AUD/USD: 0.7532 -0.0039 (-0.54%)
  • ASX200 SPI futures (June contracts): 5,949 (-17)

1: It’s RBA day: The Reserve Bank is likely to keep rates on hold at 1.5%, but today’s announcement (2:30pm AEDT) will still get plenty of attention ahead of the bank’s quarterly Statement on Monetary Policy this Friday. David Scutt’s 10-second guide has everything you need to know.

2. The Aussie dollar heads into today’s rates decision significantly weaker after it came under late selling pressure overnight. It’s fallen to around 0.7530 US cents with the 0.7475–0.7480 range highlighted as the next key level of support.

3. Those falls were due in part to another round of strength in the US dollar, after PCE inflation data rose from 1.6% to 1.9% in March — tracking towards the US Fed’s 2-3% target band. The USD also gained against the euro after German retail sales and inflation data missed expectations.

4. Elsewhere, oil prices were the big mover overnight after Israel said it had proof that Iran is still advancing its nuclear weapons program. That increased speculation the Trump administration may reimpose its Iran sanctions, sending prices for brent crude racing back above $US75 a barrel.

5. Meanwhile, it was a rough session for stocks as US markets fell into the close despite a steady round of earnings results and lots of M&A activity — including the $US146 billion merger of Sprint and T-mobile.

6. And lastly, US 10-year bond yields held steady at around 2.95% ahead of the US Fed’s two-day interest rates meeting, which kicks off tonight ahead of tomorrow’s rates announcement.

Have a great day.

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