Aussie is mildly lower after RBA left cash rate unchanged at 1.75% as widely expected. The central bank maintained a neutral stance in the statement, but hinted that it might adjust the stance based on incoming information. It said in the statement that "over the period ahead, further information should allow the Board to refine its assessment of the outlook for growth and inflation and to make any adjustment to the stance of policy that may be appropriate." That should refer to the set of Q2 data including inflation, employment and GDP. Regarding the impact of Brexit referendum, RBA just noted that "most markets have continued to function effectively" and "any effects of the referendum outcome on global economic activity remain to be seen". Also released from Australia, trade deficit widened to AUD -2.22b in May, retail sales rose 0.2% mom. From China, Caixin PMI services rose to 52.7 in June.
Elsewhere, stocks markets are taking a breather today after last week's rally. Nikkei is trading down -0.9% at the time of writing and HK HSI is down -0.8%. US markets will return from holiday later today. WTI crude oil was rejected from 50 handle again and is back pressing 48 but it's staying in near term range so far. Gold jumped overall but fails to take out recent high at 1362.6. In the currency markets, yen is notably higher today following weakness in stocks. The Japanese currency is followed by Dollar while commodity currencies are generally lower.
Looking ahead, UK events are the main focuses today. UK services PMI is expected to drop slightly to 53.1 in June. BoE will release its bi-annual Financial Stability Report. Governor Mark Carney will hold a press conference after the release and he is expected to talk about the implications of Brexit and corresponding measures by the central bank. There are talks that BoE might lower banks' capital requirements. Meanwhile, Eurozone will release services PMI final and retail sales, US will release factory orders.