Markets Today: BOJ & RBA – both non-events, UK PMI ahead

We had a busy Asian session this Tuesday, with the much-awaited BOJ and RBA interest rates decisions turning out to be a non-event, having limited impact on the fx markets. Both the central banks left its benchmark interest rates on hold today.  

Data-wise, a set of better-than expected Chinese manufacturing PMI reports eased worries over China’s economic recovery and therefore, boosted risk-appetite across the board.

Next of relevance for the markets remains the BOJ Kuroda’s post-decision press conference, which will be followed by the UK manufacturing PMI data due later in the European session.  

While markets also look forward to the US manufacturing PMI releases from both the ISM And Markit for fresh insights on the strength of the US economy recovery.

Main topics in Asia

Chinese manufacturers signaled improvement in growth during October

China's Caixin manufacturing PMI for October comes in at 51.2 vs 50.2 exp and 50.1 last. The data follows better than expected China's government Manuf PMI, published at 1GMT.

BOJ: Keeps monetary policy unchanged, reduces CPI forecast

The two-day Bank of Japan meeting has concluded, with the Central Bank deciding to keep monetary policy unchanged.

Reuters/Ipsos poll: Clinton holds a 5 percentage point lead over Trump

According to the latest Reuters/Ipsos opinion poll released on Monday, votes in favor of Hillary Clinton outpaced that for her rival Donald Trump by a five percentage point, i.e., down only slightly since the FBI said last week it was reviewing new emails in its investigation of the former secretary of state.

RBA keeps rates unchanged at 1.5%, retains neutral stance

As widely expected, the RBA has decided to keep its interest rate unchanged at 1.5%, with the policy statement keeping a neutral stance.

Key focus for the day ahead

GBP/USD supported at daily pivot ahead of UK PMI

Next in focus for the major remains the UK manufacturing PMI and ISM manufacturing PMI report from the US docket for fresh impetus on the spot.

USD/JPY confined below 105.00 post-BOJ

Further upside remains limited as markets await BOJ Kuroda’s press conference for fresh direction on USD/JPY.