Focus on the Australian Dollar!! RBA Board of Directors meeting and the National People's Congress convening ~ Points of interest and schedule on March 5 ~

Yesterday, due to President Trump's critique of the dollar and criticism of the Fed (Chair Powell), the dollar weakened.

In addition, there were hopes that the UK withdrawal agreement could be reached, so the pound was bought, but a weak economic indicator triggered another decline and a lack of direction. However, regarding the pound, there is no clear direction, but volatility has increased.

The euro remained weak and steady.

◎ Today's Highlights

1) RBA Board

The policy rate is expected to be held steady. The points to watch are the statement and the following day's remarks by the RBA Governor. Last time, concerns about a rate cut were in focus, and the statement reassured those concerns, leading to a strong rally in the Australian dollar, while the Governor's remarks the next day suggested possible rate cuts, causing AUD to fall. With the AUD near its lows, will it break lower or rebound? All eyes are on the statement and the Governor's remarks.

Additionally, we are watching how the economy of Australia, housing prices (real estate prices), and housing loans are discussed.

2) National People's Congress (NPC)

The NPC, held for 11 days starting today, will present economic reports and future policies. There are rumors that Shanghai Composite Index gains up to yesterday were anticipated for the NPC. We will focus on the NPC's contents.

3) Europe Economic Sentiment Indicator

Today, service PMI and composite PMI from various European countries will be released. As ECB Council meeting approaches, if weak results continue, the introduction of accommodative policy (TLTRO) may be seriously discussed. There is a possibility that the policy could be announced at this week's ECB meeting. Weak economic indicators are expected to support the easing policies.

A weak euro is in a situation where it tends to fall. It would also be supportive of a euro decline.

◎ Today's Economic Event Schedule

Tuesday, March 5

National People's Congress (NPC) – until the 15th

10:45　CNY　Caixin Services PMI

12:30　AUDRBA Policy Rate & Statement Release

16:30　SEK　Sweden Services PMI

16:30　CHF　Switzerland CPI (Consumer Price Index)

17:45　EUR　Italy Services PMI

17:50　EUR　France Composite & Services PMI

17:55　EUR　Germany Composite & Services PMI

18:00　EUR　Italy GDP

18:00　EUR　Spain Consumer Confidence

18:00　EUR　Eurozone Composite & Services PMI

18:30　GBP　Services PMI

19:00　EUR　Eurozone Retail Sales

23:45　USD　U.S. Composite & Services PMI

Wednesday, March 6

NPC Opening – until the 15th

00:00　USDISM Non-Manufacturing PMI

00:35　GBPCarney, BOE Governor Remarks

01:30　USD　Barkin, Richmond Fed President Remarks

04:00　USD　Monthly Budget Statement

07:10　AUDLow RBA Governor Remarks

09:30　AUDQuarterly GDP

10:30　JPY　Harada, BOJ Board member remarks