The indices in the States closed lower after the fall of the Oil prices. The Material and industrial stocks led the fall of the S&P index. The Oil prices fell below $36 per barrel and it is expected that during the Asian session the fall of the indices to continue.
We are expecting the decision of the Royal Bank of Australia interest rates decision at 07:30 (our time), as it is expected that no action will be taken, but the bank can hint of possible reduction of the rate in the future. Fundamentally, global economies growth is very weak and with almost no inflation, and until data from China does not improve, Australia's Central Bank would need to stimulate the economy in one way or another and to follow the lead of the other Central Banks.
The US dollar continue to fall and to lose positions, but that may change quickly, if the indices world wide continue to slide, together with the Oil prices. The Australian and the New Zealand dollar have gained the most against the US dollar and now they possible can loose the most. The Yen has also strengthen against all currencies as the indices have fallen.
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