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20 May 2014
Asia Recap: AUD barely holding $0.93
FXStreet (Bali) - The Australian Dollar was the main loser in Asia, with the Japanese Yen holding firm around US closing levels.
AUD/USD traded depressed, opening near 0.93 after a bearish outside day on Monday, a development that did not bode well for the interest of Aussie longs. Recent news that S&P may have a rethink on Australia's AAA credit rating, even if not in the near term, was a factor also weighing on the Australian Dollar.
As Tokyo came online, and after a half-hearted recovery to 0.9333, sellers took control by taking out stops below 0.9315 ahead of the RBA minutes, with the outcome of the release a non-event, reiterating their commitment to keep rates low for the foreseeable future, which led to the exchange rate consolidate near lows.
Afterwards, and ahead of a speech by RBA's Assistant Governor Debelle, the pair breached 0.93 marginally, although lack of follow through kept the rate stuck around the whole number. In today's speech, one of the main comments making the headlines by Debelle was when he said that "reduced capital inflows could result in lower AUD."
USD/JPY and the JPY crosses traded in a mixed tone. USD/JPY, following the recovery in US yields overnight (moving back above 2.5%), saw bids taking the rate to a session high of 101.58, benefited also by a rally in the Nikkei, up 0.75%, after the brief drive sub-13,000 yesterday. Towards the end of the session, offers ahead of the 101.60 level - light stops are reported above - resulted in a shallow retraement to 101.50.
The rest of G10 currencies, excluding the Kiwi, which remained a bit pressured by AUD/USD sales, saw ranges extend.
Main headlines in Asia
Australia faces prospects of losing AAA rating status
S&P appeases Australia's downgrade fears
AUD/USD takes out stops ahead of RBA
RBA minutes: Low rates appropriate for some time yet
China Commerce Ministry: Arduous task to achieve 7.5% growth target
RBA's Debelle: Reduced capital inflows could result in further decline in the Aussie
Japan All Industry Activity Index (MoM) registered at 1.5%, below expectations (1.6%) in March
AUD/USD traded depressed, opening near 0.93 after a bearish outside day on Monday, a development that did not bode well for the interest of Aussie longs. Recent news that S&P may have a rethink on Australia's AAA credit rating, even if not in the near term, was a factor also weighing on the Australian Dollar.
As Tokyo came online, and after a half-hearted recovery to 0.9333, sellers took control by taking out stops below 0.9315 ahead of the RBA minutes, with the outcome of the release a non-event, reiterating their commitment to keep rates low for the foreseeable future, which led to the exchange rate consolidate near lows.
Afterwards, and ahead of a speech by RBA's Assistant Governor Debelle, the pair breached 0.93 marginally, although lack of follow through kept the rate stuck around the whole number. In today's speech, one of the main comments making the headlines by Debelle was when he said that "reduced capital inflows could result in lower AUD."
USD/JPY and the JPY crosses traded in a mixed tone. USD/JPY, following the recovery in US yields overnight (moving back above 2.5%), saw bids taking the rate to a session high of 101.58, benefited also by a rally in the Nikkei, up 0.75%, after the brief drive sub-13,000 yesterday. Towards the end of the session, offers ahead of the 101.60 level - light stops are reported above - resulted in a shallow retraement to 101.50.
The rest of G10 currencies, excluding the Kiwi, which remained a bit pressured by AUD/USD sales, saw ranges extend.
Main headlines in Asia
Australia faces prospects of losing AAA rating status
S&P appeases Australia's downgrade fears
AUD/USD takes out stops ahead of RBA
RBA minutes: Low rates appropriate for some time yet
China Commerce Ministry: Arduous task to achieve 7.5% growth target
RBA's Debelle: Reduced capital inflows could result in further decline in the Aussie
Japan All Industry Activity Index (MoM) registered at 1.5%, below expectations (1.6%) in March