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4 Mar 2014
Asia Recap: RBA reminds us of historically high AUD
FXStreet (Bali) - The Australian Dollar was the worst performer during the Asian session following the RBA monetary policy decision, while the US Dollar and the Euro were the firmest currencies.
The AUD/USD rose towards the 0.8970 resistance area following the RBA unchanged 2.5% rate call, however, the joy for long players was very short-lived, as a stampede of selling orders smashed the rate back down to 0.8910. The decline was mainly attributed to the RBA making reference to the AUD levels, saying "rate remains high by historical standards."
The USD/JPY was well bid throughout the session, posting a session high of 101.70 after the Nikkei erased early losses to approach the closing bell around +0.25%. Traders should be watchful of headlines on Ukraine to trade the pair, with moves outside Asian hours still to be determined most likely on a headline-to-headline basis.
The rest of currencies offered little moves of interest as prudence remains the name of the game as long as the Ukraine/Russian fluid situation appeases. This could result on a significant decrease in trading volumes, thus thinner liquidity in the markets.
Main headlines in Asia
Australian building approvals soar in January
How serious is the Ukraine crisis for the FX market? - Westpac
Japan Labor Cash Earnings (YoY) -0.2% in January
RBA keeps rate at 2.5%, retains neutral stance
Australia's BoP current account balance for Q4 in line with expectations
The AUD/USD rose towards the 0.8970 resistance area following the RBA unchanged 2.5% rate call, however, the joy for long players was very short-lived, as a stampede of selling orders smashed the rate back down to 0.8910. The decline was mainly attributed to the RBA making reference to the AUD levels, saying "rate remains high by historical standards."
The USD/JPY was well bid throughout the session, posting a session high of 101.70 after the Nikkei erased early losses to approach the closing bell around +0.25%. Traders should be watchful of headlines on Ukraine to trade the pair, with moves outside Asian hours still to be determined most likely on a headline-to-headline basis.
The rest of currencies offered little moves of interest as prudence remains the name of the game as long as the Ukraine/Russian fluid situation appeases. This could result on a significant decrease in trading volumes, thus thinner liquidity in the markets.
Main headlines in Asia
Australian building approvals soar in January
How serious is the Ukraine crisis for the FX market? - Westpac
Japan Labor Cash Earnings (YoY) -0.2% in January
RBA keeps rate at 2.5%, retains neutral stance
Australia's BoP current account balance for Q4 in line with expectations