RBA takes the shine off the AUD and Greece kicks the can further along the street

AUD/USD

Range: 1.0701 – 1.0790
Support: 1.0700
Resistance: 1.0850

The US dollar traded with a slightly stronger tone across the G7 space overnight but it was the AUD that was the biggest loser as the lifestyle currency rejects the 1.0850 level again. AUD eased back close to 1.0700 overnight as the RBA released its quarterly statement on monetary policy which was slightly dovish as it lowered its 2012 GDP forecast from 4% to 3.5% and inflation to 1.75% from 2%. The Chinese trade data didn’t help the AUD with a slightly weaker seasonally affected reading.

EUR/USD
Range: 1.3240-1.3291
Support: 1.3150
Resistance: 1.3335
The euro held up considerably well in Asia despite the Greek can being kicked a little further along the street. The single currency consolidated just below yesterday’s two-month high of 1.3322 as the Greek saga continued with Eurogroup Chairman Junker saying that Athens still needs to convince its official paymasters of its commitment to implementing fresh austerity measures and until it does the eurozone leaders will not be able to sign off on a new bailout package.

USD/JPY
Range: 77.52-77.75
Support: 77.20
Resistance: 77.80
JPY continues to trade under pressure and extended its decline against the dollar overnight to a 2-week low of 77.75 ahead of the exporter demand for the JPY at 77.80. With investors still on the hunt for yields EURO/JPY and AUD/JPY have seen solid demand all week with many sighting a break in USD/JPY of 78.30 as a catalyst for a 80.00 handle. Japan’s Finance minister also helped to weaken JPY with comments that Japan won’t hesitate to intervene in the FX markets on their own.