Cash rate announcements in both Japan and Australia have the potential to shock the markets but both are expected to keep rates on hold and remain neutral. RBA is unlikely to move so close to US elections and US FED Rate hike and will leave what little powder it has dry for whatever 2017 throws our way. AUD/USD rests at 0.7600 with key resistance at 0.7700.
October Chinese PMI are also forecast to remain above 50.0 and this could help underpin the Aussie dollar further as markets will then turn to the US elections for inspiration.
AUD/NZD has continued to crawl higher amid data and central bank divergence between the two countries. New Zealand is expected to cut rates next Thursday and this could lift the AUD/NZD back towards fair value near 1.1000.
