Highlights
At 2:30 p.m. AEST Tuesday (0030 EDT/0430 GMT), the Reserve Bank of Australia said its board decided to leave its main policy rate, the cash rate, unchanged at 4.10 percent, as largely expected, after unexpectedly raising the rate by 25 basis points last month. The higher interest rates are working to establish a more sustainable balance between supply and demand in the economy and will continue to do so, Governor Philip Lowe said in a statement. In light of this and the uncertainty surrounding the economic outlook, the Board decided to hold interest rates steady this month.
Looking ahead, the governor repeated his recent mantra, Some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe, but that will depend upon how the economy and inflation evolve. Australia's consumer inflation eased to 5.6 percent in May from 6.8 percent in April but it is still well above the bank's medium-term inflation target of between 2 and 3 percent.
In Europe, Germany's goods balance is expected to narrow slightly to a €18.1 billion surplus in May versus a greater-than-expected surplus of €18.4 billion in April that benefited from a rise in exports but especially from a sharp drop in imports.
US markets are closed for the Independence Day holiday. Trading in Canadian markets resumes on Tuesday after the Canada Day public holiday on Monday.
In China, S&P's services PMI in June is expected to slow to 55.9 versus May's very solid 57.1. Official Chinese purchasing managers' index (PMI) survey data released last week showed that the CFLP non-manufacturing PMI headline index fell to 53.2 from 54.5 in May, coming in weaker than expected.
Looking ahead, the governor repeated his recent mantra, Some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe, but that will depend upon how the economy and inflation evolve. Australia's consumer inflation eased to 5.6 percent in May from 6.8 percent in April but it is still well above the bank's medium-term inflation target of between 2 and 3 percent.
In Europe, Germany's goods balance is expected to narrow slightly to a €18.1 billion surplus in May versus a greater-than-expected surplus of €18.4 billion in April that benefited from a rise in exports but especially from a sharp drop in imports.
US markets are closed for the Independence Day holiday. Trading in Canadian markets resumes on Tuesday after the Canada Day public holiday on Monday.
In China, S&P's services PMI in June is expected to slow to 55.9 versus May's very solid 57.1. Official Chinese purchasing managers' index (PMI) survey data released last week showed that the CFLP non-manufacturing PMI headline index fell to 53.2 from 54.5 in May, coming in weaker than expected.
Definition
Market Focus details key factors in the coming day that will impact the economic outlook and the financial markets. These include central bank events, economic indicators, policymaker speeches as well as expected political and corporate developments.
Description
Keeping up-to-date with event schedules and the economic calendar is key to understanding the global financial system. Econoday's Market Focus allows investors and policymakers to carefully track what will be making news and moving the financial markets in the coming day.
