Today the RBA unexpectedly implemented a 0.25% cut to its benchmark rate after keeping interest rate policy unchanged for 18 months at 2.50%. The decision was reached due to the subdued growth outlook and the drop in commodity prices which have hurt mining investments, particularly, for iron ore. Analysts suggest that the removal of the “period of stability” reference in the RBA’s report, could signal further easing down the road. The S&P/ASX 200 reacted positively to the news, jumping 1.2%, while the Aussie dropped 1.9% below $0.77 against the Dollar.

US Markets

Due to the lack of major economic releases other than vehicle sales, we expect US investors will likely turn their attention to earnings reports by oil companies.