15 Apr 2014
Asia Recap: RBA slightly more upbeat, AUD a tad softer
FXStreet (Bali) - The Australian and New Zealand Dollars traded softer on the back of a neutral RBA minutes, while the Japanese Yen traded directionless after early weakness.
AUD/USD opened near day highs, although further upside was never challenged as sellers remained well camped above .9420/30 area. Once the RBA minutes was out of the way, the AUD started to accelerate losses, losing .94 support to test .9385 support. The RBA highlighted again the value of the AUD remains historically high vs other more aggressive rhetoric from last year.
RBA sounded slightly more optimistic on the economy and labour market, saying that "while falling mining investment and weak public demand were set to constrain growth for some time, there were early promising signs in other parts of the economy", adding that "a range of labor demand suggested a modest improvement in prospects for employment."
USD/JPY operated with a slightly improved tone, despite approaches towards the 102.00 proved futile amid reported selling interest around the round number. A higher Nikkei 225 (+0.87%) coupled with US retail sales, kept the rate buoyed. On the flip side, it should be pointed out that judging by the Japanese stocks rise and the improved US economic data on Monday, one would have expected a slightly stronger USD/JPY, an indication that selling interest on strength continues fairly high.
NZD/USD traded weaker ahead of Wed's CPI results, declining as low as 0.8650 after a topside failure near 0.87 earlier at the Tokyo open. The rest of G10 currencies were little changed.
Main headlines in Asia
Obama: Russia's actions not conducive to diplomatic solutions
United Kingdom BRC Retail Sales Monitor - All (YoY) came in at -1.7% disappointing expectations (1%) in March
RBA minutes: Rates to remain steady, repeats line on AUD value
RBA Debelle speech: Australian yields likely to remain low for some time
Kuroda: Won't hesitate to adjust monetary policy if needed
AUD/USD opened near day highs, although further upside was never challenged as sellers remained well camped above .9420/30 area. Once the RBA minutes was out of the way, the AUD started to accelerate losses, losing .94 support to test .9385 support. The RBA highlighted again the value of the AUD remains historically high vs other more aggressive rhetoric from last year.
RBA sounded slightly more optimistic on the economy and labour market, saying that "while falling mining investment and weak public demand were set to constrain growth for some time, there were early promising signs in other parts of the economy", adding that "a range of labor demand suggested a modest improvement in prospects for employment."
USD/JPY operated with a slightly improved tone, despite approaches towards the 102.00 proved futile amid reported selling interest around the round number. A higher Nikkei 225 (+0.87%) coupled with US retail sales, kept the rate buoyed. On the flip side, it should be pointed out that judging by the Japanese stocks rise and the improved US economic data on Monday, one would have expected a slightly stronger USD/JPY, an indication that selling interest on strength continues fairly high.
NZD/USD traded weaker ahead of Wed's CPI results, declining as low as 0.8650 after a topside failure near 0.87 earlier at the Tokyo open. The rest of G10 currencies were little changed.
Main headlines in Asia
Obama: Russia's actions not conducive to diplomatic solutions
United Kingdom BRC Retail Sales Monitor - All (YoY) came in at -1.7% disappointing expectations (1%) in March
RBA minutes: Rates to remain steady, repeats line on AUD value
RBA Debelle speech: Australian yields likely to remain low for some time
Kuroda: Won't hesitate to adjust monetary policy if needed