European Open: RBA on hold

Japan was closed for Culture Day, so there wasn’t much movement in FX overnight. Asian equities instead traded higher, mainly following better US data and the energy sector. Tough to argue against further strength in the near term, and I prefer US indices (Dow & ES) to play the upside.
The RBA stood pat and issued a rather balanced statement. The market was expecting somewhat of a dovish tone, and instead received neutrality. Aud is higher on this and EurAud shorts along with AudNzd longs might be interesting in the coming days. We have already moved too much on the RBA, so further gains will be limited today.
The only 2 data points today are the UK Construction PMI at 10.30 CET (expected to soften, so any beat will have the Pound soaring again) and the GDT auction (apparently the market is pricing in a better auction than last time).
ECB President Draghi speaks in Frankfurt tonight (20.00 CET) but it is the Grand Opening event of the 2015 European Cultural Days and so seems unlikely to have policy content.
No charts for today – can’t see anything compelling.

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