Further Aussie Weakness Contingent Upon RBA Statement

The Australian and New Zealand dollar both ended the day mildly higher against the US dollar, as the Reserve Bank of Australia’s decision to leave rates steady at 6.25 percent proved to be a non-event.

However, tomorrow evening could be crucial for Aussie trade as the central bank’s Monetary Policy Statement is set to be release and will include outlooks for growth and inflation this year, helping to gauge the RBA’s bias. The Canadian dollar held up even better against the greenback today, though USDCAD declines stalled near 1.1080 ahead of major event risk Friday when Ivey PMI will hit the tape. Estimates are for a decline following an unexpected surge during the month prior, but nevertheless, the US NFP report will likely dominate USDCAD trade that day.