ECB, BOE To Hold Key Rates; More Exit Measures Expected

from MoneyTrading.com.au

European Central Bank will most likely hold its interest rates unchanged for another month and may announce new measures related to gradual exit from monetary stimulus.


The nine member monetary policy committee of the Bank of England is also expected to leave the key interest rate unchanged at 0.5% and to keep on hold its GBP 200 billion asset purchase programme as they did in February.

Australian Dollar Falls From Week High on RBA Inflation Outlook

from MoneyTrading.com.au

The Australian dollar fell from a one-week high as the central bank said inflation would likely be “consistent” with its target this year, suggesting it may slow the pace of interest-rate increases.


Australia’s currency traded at 89.90 U.S. cents as of 4:06 p.m. in Sydney, after reaching as high as 90.31 cents following the rate decision, from 90.09 cents in New York yesterday. The currency traded at 80.36 yen from 80.30 yen.

Australian Dollar rises on hopes Greece will be rescued

from MoneyTrading.com.au

The Australian dollar rises for a second consecutive day amid hopes that the European Union was close to announcing more concrete measures to deal with the sovereign debt problem in Greece, despite mixed data about the current account and business indicators.


The US dollar fell against the euro on Friday, after reports suggested the German government might organise help for Greece. The greenback's fall contributed to substantial gains for oil, gold and copper prices, which flowed through to Australian resources and energy stocks.

Traders were awaiting US economic data, including the ISM manufacturing index due out overnight, while the Reserve Bank of Australia board is expected to increase the overnight cash rate to 4 per cent.