Asian Session – Aussie surges after RBA holds rates
February 4, 2014 7:41 am
The Australian dollar was the main currency that stood out today after it surged by over 1% against the US dollar on the back of a more upbeat Reserve Bank of Australia policy statement.
The RBA left its main interest rate on hold at a record low 0.25% and issued a less dovish statement that shifted from “a soft easing bias to a clearly neutral bias”.
After initial weakness against the greenback, the aussie jumped to an Asian session high of 0.8892 from a low of 0.8729. The Australian currency ended the session with a 1.46% gain at 0.8875.
The US dollar was able to regain some losses made against the yen after a sharp tumble on Monday following disappointing US ISM manufacturing PMI data. The January survey plunged to 51.3 compared to 56.0 expected.
The data pushed dollar/yen below 101 to 100.76 before bouncing to 101.36 in Asia. The pair ended the session with a 0.05% gain at 101.02. Lending support to the dollar was news that Japan’s monetary base widened in January, which caused some yen-selling.
The euro briefly touched a 2-month low of 136.21 against the yen before ending the session at 136.65 with a 0.07% gain. Against the dollar, the euro gained 0.03% to 1.3528.
Sterling was one of the worst performing G10 currencies, after extending its decline against the US dollar today. The pound lost 0.18% to end the Asian session at 1.6274.
Monday’s UK manufacturing PMI was disappointing and hurt the pound. UK construction PMI data will be in focus later today.
The Australian dollar was the main currency that stood out today after it surged by over 1% against the US dollar on the back of a more upbeat Reserve Bank of Australia policy statement.
The RBA left its main interest rate on hold at a record low 0.25% and issued a less dovish statement that shifted from “a soft easing bias to a clearly neutral bias”.
After initial weakness against the greenback, the aussie jumped to an Asian session high of 0.8892 from a low of 0.8729. The Australian currency ended the session with a 1.46% gain at 0.8875.
The US dollar was able to regain some losses made against the yen after a sharp tumble on Monday following disappointing US ISM manufacturing PMI data. The January survey plunged to 51.3 compared to 56.0 expected.
The data pushed dollar/yen below 101 to 100.76 before bouncing to 101.36 in Asia. The pair ended the session with a 0.05% gain at 101.02. Lending support to the dollar was news that Japan’s monetary base widened in January, which caused some yen-selling.
The euro briefly touched a 2-month low of 136.21 against the yen before ending the session at 136.65 with a 0.07% gain. Against the dollar, the euro gained 0.03% to 1.3528.
Sterling was one of the worst performing G10 currencies, after extending its decline against the US dollar today. The pound lost 0.18% to end the Asian session at 1.6274.
Monday’s UK manufacturing PMI was disappointing and hurt the pound. UK construction PMI data will be in focus later today.
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