RBA surprises ahead of US election results
What happened overnight
• RBA leaves rates unchanged, with less dovish than expected statement
• US elections exit polls available starting 7pm EST today
• German factory orders surprised sharply lower
• PMI revised lower in Germany and France, higher in Spain and Italy
AUD was the top performer of the day, in light of the significantly less dovish than expected outcome of the RBA meeting. The decision to not cut rates, as we and most of the market expected, and to follow up with a fairly neutral statement pushed AUDUSD sharply back above 1.04 to a high of 1.0445, and AUDNZD up to 1.2624. Risk currencies followed suit, reporting gains against the USD, despite the generally mixed tone of risky assets outside of FX. This marks yet another G10 central bank surprising the market with a hawkish decision, in the aftermath of similar decisions by the likes of the Bank of Canada, the Riksbank, Norges Bank and Bank of Canada.
Click here to read the full report: FX Daily
Credit Suisse