RBA takes the shine off the AUD and Greece kicks the can further along the street
City Index February 10, 2012 1:00 PM
<p>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 […]</p>
Range: 1.0701 – 1.0790
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.
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.
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.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.