RBA Board Council Announces ISM and Key Indicators! "Highlights for May 5 and Event Schedule"

Yesterday's Tokyo market was quiet due to Golden Week.

Later, in the European and American markets as well, trading lacked catalysts and ranged in a dull market.

Today’s Tokyo market is also expected to be a dull market.

When a big headline comes out during such times, prices can jump dramatically or a flash crash can occur.

I would like to manage risk carefully.

◎ Today's Highlights

1) RBA Board Meeting

Today's policy interest rate decision from the Reserve Bank of Australia (RBA) is expected to be kept on hold.

With discussions about easing lockdowns in Australia, it might be seeing signs of convergence.

Therefore, at today’s RBA board meeting, attention is on how much damage the coronavirus has inflicted on the Australian economy, how long it will take to recover, and what kind of policies will be required going forward.

2) ISM Non-Manufacturing NMI

ISM Non-Manufacturing Index is the index of the service sector, i.e., the part of the economy other than manufacturing.

Business sentiment measures how respondents in service industries feel about future economic conditions and are indexed based on their responses.

In the U.S., consumption accounts for a large share of GDP, and consumption is a key driver of economic growth.

Therefore, data related to the service sector is highly valued in the U.S.

The ISM Non-Manufacturing Index, to be released today, is a service-sector indicator, so it is drawing considerable attention.

3) Risk-off Factor

U.S.-China relations are deteriorating.

The U.S. says there is evidence that the Wuhan Institute of Virology is the source of the coronavirus.

There are rumors that a Wuhan researcher fled to France with evidence.

China denies and condemns these claims.

If U.S.-China relations worsen, the risk-off previously driven by the coronavirus could shift to a risk-off driven by the U.S.-China tensions.

Pay attention to statements and headlines regarding U.S.-China relations.

◎ Today's Event Schedule

May 5 (Tuesday)

13:30 AUDRBA Board Meeting: Policy Rate and Statement

16:30 SEK Sweden GDP

17:30 GBP UK Services PMI

21:30 USD US Trade Balance

21:30 CAD Canada Trade Balance

22:45 USD Services PMI

23:00 USDISM Non-Manufacturing Index

23:00 USD Evans, President of the Chicago Fed, speaks

May 6 (Wednesday)

03:00 USD Bostic, Atlanta Fed President; Brades, St. Louis Fed President speak

07:45 NZDNZ Employment Change and Unemployment Rate

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