Asian Shares Traded Mixed, AUD Pressured As RBA Is Set For Further Monetary Easing

Asian stocks traded mixed as investors digested the People's Bank of China's (PBoC) decision to keep interest rates unchanged.

Crude oil prices declined amid mounting concerns over fuel demand recovery as the number of infections keep rising worldwide and several countries imposed fresh restrictions including Germany, Italy, France, Ireland and US state of Wisconsin.

Gold prices fell as caution set in ahead of the deadline to reach an agreement on a new U.S. coronavirus stimulus package and the upcoming presidential election.


FX Markets

The dollar index (USD) traded lower as investors await developments on the new stimulus bill as the 48-hour deadline set by Democrats expires today.

The euro (EUR) surged amid broad dollar weakness as all eyes turn to a pre-election US stimulus package deadline set by House speaker Nancy Pelosi.

The UK pound (GBP) jumped as hopes grew that British and European negotiators might be able to salvage post-Brexit trade talks. Michel Barnier and David Frost, the lead EU and British negotiators, were discussing continuing trade talks over the phone on Monday.

The aussie (AUD) down as The Reserve Bank of Australia discussed the case for additional monetary easing to support jobs and the overall economy, including slashing the cash rate toward zero and buying longer-dated government bonds.

The kiwi (NZD) dropped after the RBNZ stated that it is actively preparing a package of additional monetary policy tools to use if needed, reaffirming that a Funding for Lending Programme (FLP), a lower or negative OCR, purchases of foreign assets, and interest rate swaps remain under consideration.

Xero Capital Markets Ltd. Review