Aussie Dollar Slips Prior to RBA Rate Cut

The Australian currency went down ahead of the latest central bank view on the cash rate with chances for a cut seen as likely. The pair of AUD and USD traded at 0.7763. It was down 0.04 percent. USD and JPY exchanged hands at 120.14 and down 0.01 percent. The decision of the Reserve Bank of Australia regarding the cash rate decision is expected today with a possible close call as the market factors in a 50 percent chance of two basis points decrease from an unprecedented low of 2.25 percent.

On the other hand, Australia’s current account balance for the 4th quarter is projected to show a shortfall of $11.0 billion (Australian Currency). This is against the $12.3 discrepancy during the 3rd quarter. Data on building approvals is meant to underline a decrease of 1.8 percent month-per-month compared to the 3.3 percent fall last December.

Meanwhile, Japan reported preliminary wage earnings in January. Average income was reported going up by 0.6 percent every year. In the US, the Institute for Supply Management disclosed that its index of purchasing managers declined to 52.9 in February from 53.5 the month before. Analysts were expecting the manufacturing PMI to weaken to 53.0 last month.