Market Update

RBA held rates steady today, but a chance of a future rate hike is still very likely.

The market is currently pricing 12-13 bp for the May meeting.

CPI reading in late April will be a key oindicator to the RBA.

BoJ's Mutu hit wires in Asia saying that rate adjustments will be gradual and prolonging low rates may hamper growth. Standard comments but USDJPY remain bid. We look for a break in Europe of 119.00 to send the pair for test of the 120.00 level.

European stocks back on track and is bound to test the highs from February, presently at 7,040 in DAX.