The Aussie Dollar gained on Tuesday after the Reserve Bank Of Australia held steady at a record low 2% in what analysts estimate was a close decision.
"At today's meeting the board judged that the prospects for an improvement in economic conditions had firmed a little over recent months and that leaving the cash rate unchanged was appropriate at this meeting".
In Asia, Stocks break a five day losing streak, helped by U.S. markets and recent data that indicated the global economy may have turned a corner. European stocks are set to open higher with a spread betters expecting Britain's FTSE 100 to open up 0.4%, Germany's Dax was seen 0.2% higher, and France's CAC 40 up 0.3%.
UK Construction PMI data headlines the economic calendar in European trading hours. A print of 58.8 is expected to mark the first slowdown in homebuilding sector activity in three months. The New Zealand Dollar traded higher in a move that was also accompanied by rising front-end bond yields, pointing to moderating RBNZ rate cut speculation. The shift may have followed data showing house prices rose 14% year-on-year in October, the most since March 2006. Governor Graeme Wheeler has expressed concern about fueling front in the housing market by easing policy further. With that in mind, traders may have interpreted the upbeat print as likely to delay stimulus expansion.
Key Market Data Today:
09:30 – GBP: Construction Purchasing Manager's Index.
15:00 – USD: Factory Orders.
19:00 – EUR: ECB President Draghi Speaks.
21:35 – USD: API Weekly Crude Oil Stocks.
21:45 – NZD: Employment Change + Unemployme