2013-02-22 06:56:13 Asian Session – Aussie rises after RBA governor plays down another rate cut
February 22, 2013 6:56 am
The Australian dollar rose after Reserve Bank of Australia governor Glenn Stevens said in a speech today that the current level of interest rates are appropriate. He also expressed his opinion that he doesn’t think the exchange rate on the aussie is too high.
The RBA chief said there was already a good deal of policy stimulus in the economy, giving little indication the central bank will consider easing rates again soon. The RBA slashed rates by 125 basis points last year, but now appears to be in “wait-and-see” mode.
AUDUSD opened in Asia at $1.0239 and bounced off four-month lows to $1.0322 on the RBA governor’s very upbeat comments. The aussie also rose sharply against the yen, euro, sterling and Swiss franc.
The yen weakened against all its major peers, trimming weekly gains, as Japanese Prime Minister Shinzo Abe prepares to meet US President Barack Obama in Washington DC this weekend. The market will be watching how supportive the US will be for Japan’s economic policies which have resulted in a weaker yen. Also, investors are being cautious until they are clear who the net BOJ governor will be.
USDJPY opened in Asia at 93.08 and edged up to highs of 93.40 yen.
The euro retraced against the dollar after falling to a six-week low on Thursday in reaction to weak PMI data. Focus turns to German economic data due at 0900GMT today which are forecast to show business sentiment rose to an eight-month high. Meanwhile, uncertainty and caution before Italy’s elections this weekend will likely cap euro gains, as the election could lead to a fragmented parliament and a weak government.
EURUSD opened in Asia at $1.3188 after across the board weakness yesterday from the weak PMI data. There was a slight rebound to move up to $1.3217.
Against the yen, the euro was slightly from late US session levels, rising to highs of 123.43 yen. Yesterday EURJPY fell to its weakest level since late January at 122.24 yen.
Sterling continued its move up higher against the dollar during the Asian session, moving off a 2-1/2 year low of $1.5131 hit on Thursday on expectations of more quantitative easing by the Bank of England. GBPUSD gained 0.4 percent in the Asian trade today to hit a high of $1.5318.
The Australian dollar rose after Reserve Bank of Australia governor Glenn Stevens said in a speech today that the current level of interest rates are appropriate. He also expressed his opinion that he doesn’t think the exchange rate on the aussie is too high.
The RBA chief said there was already a good deal of policy stimulus in the economy, giving little indication the central bank will consider easing rates again soon. The RBA slashed rates by 125 basis points last year, but now appears to be in “wait-and-see” mode.
AUDUSD opened in Asia at $1.0239 and bounced off four-month lows to $1.0322 on the RBA governor’s very upbeat comments. The aussie also rose sharply against the yen, euro, sterling and Swiss franc.
The yen weakened against all its major peers, trimming weekly gains, as Japanese Prime Minister Shinzo Abe prepares to meet US President Barack Obama in Washington DC this weekend. The market will be watching how supportive the US will be for Japan’s economic policies which have resulted in a weaker yen. Also, investors are being cautious until they are clear who the net BOJ governor will be.
USDJPY opened in Asia at 93.08 and edged up to highs of 93.40 yen.
The euro retraced against the dollar after falling to a six-week low on Thursday in reaction to weak PMI data. Focus turns to German economic data due at 0900GMT today which are forecast to show business sentiment rose to an eight-month high. Meanwhile, uncertainty and caution before Italy’s elections this weekend will likely cap euro gains, as the election could lead to a fragmented parliament and a weak government.
EURUSD opened in Asia at $1.3188 after across the board weakness yesterday from the weak PMI data. There was a slight rebound to move up to $1.3217.
Against the yen, the euro was slightly from late US session levels, rising to highs of 123.43 yen. Yesterday EURJPY fell to its weakest level since late January at 122.24 yen.
Sterling continued its move up higher against the dollar during the Asian session, moving off a 2-1/2 year low of $1.5131 hit on Thursday on expectations of more quantitative easing by the Bank of England. GBPUSD gained 0.4 percent in the Asian trade today to hit a high of $1.5318.
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