Australian dollar recovers as RBA left the cash rate unchanged at 2.00% as expected and maintained a neutral stance. The central bank noted that "further information on economic and financial conditions to be received over the period ahead will inform the Board's ongoing assessment of the outlook and hence whether the current stance of policy will most effectively foster sustainable growth and inflation consistent with the target." Regarding exchange rate, RBA noted that Aussie is "adjusting to the significant declines in key commodity prices." Also from Australia, retail sales rose 0.7% mom in June, much better than expectation of 0.4% mom. Trade deficits widened to AUD -2.93b in June but was smaller than expectation of AUD -3.06b.
In Japan, BoJ governor Kikuo Iwata said that he didn't see the expected rate hike from Fed and BoE "as a risk". He noted that the hikes "could be fully priced in" and "there wouldn't be much reaction". BoJ will meet later this week and is widely expected to maintain the ultra-ease monetary policy unchanged. That is, interest rate will be kept near zero while the annual target for monetary base expansion will be held at JPY 80T. Nonetheless, some economists noted that the weakness in the economy could hit the underlying price trend and force BoJ to expand the stimulus measures later down the road.
In Eurozone, ECB data showed that the central bank purchased EUR 61.3b of public and private debts under the quantitative easing program in July. That exceeded the monthly target of EUR 60b slightly. That was seen as an act of front-loading the bond purchases to calm market volatility caused by uncertainties over Greece. In details, EUR 51.4b of government and agency bonds were bought, with EUR 9b in cover bonds and EUR 944m in asset-backed securities.
Looking ahead, UK will release nationwide house prices and construction PMI. Eurozone will release PPI. US will release factory orders.