Asian Session – Aussie tumbles after RBA signals future rate cut
July 2, 2013 6:19 am
Risk appetite remained in the Asian session as market sentiment was boosted yesterday on improved manufacturing data from major global economies, outweighing fears of a reduction in U.S. monetary stimulus.
This reduced demand for the safer dollar and gave some relief to riskier assets like euro and sterling.
The euro held onto gains made yesterday after being lifted by stronger manufacturing PMI numbers from the euro zone. There were encouraging signs out of debt-burdened peripheral euro zone countries such as Spain and Italy.
The U.K. also showed signs of improvement in its manufacturing sector after its PMI rose to the highest in two years.
EURUSD consolidated between $1.3048 and $1.3070 in the Asian session while GBPUSD traded a tight range between $1.5192 and $1.5218.
Meanwhile in the U.S., the ISM report on manufacturing also was upbeat after rebounding from an unexpected contraction in May.
This reduced demand for the safe haven yen and the dollar rose to a four week high yesterday of 99.85 yen. USDJPY held almost unchanged around 99.60 yen.
The Australian dollar tumbled after the Reserve Bank of Australia announced its left interest rates at 2.75 percent and kept the door open to further interest rate cuts.
AUDUSD dropped to $0.9157 from the session high of $0.9248.
Risk appetite remained in the Asian session as market sentiment was boosted yesterday on improved manufacturing data from major global economies, outweighing fears of a reduction in U.S. monetary stimulus.
This reduced demand for the safer dollar and gave some relief to riskier assets like euro and sterling.
The euro held onto gains made yesterday after being lifted by stronger manufacturing PMI numbers from the euro zone. There were encouraging signs out of debt-burdened peripheral euro zone countries such as Spain and Italy.
The U.K. also showed signs of improvement in its manufacturing sector after its PMI rose to the highest in two years.
EURUSD consolidated between $1.3048 and $1.3070 in the Asian session while GBPUSD traded a tight range between $1.5192 and $1.5218.
Meanwhile in the U.S., the ISM report on manufacturing also was upbeat after rebounding from an unexpected contraction in May.
This reduced demand for the safe haven yen and the dollar rose to a four week high yesterday of 99.85 yen. USDJPY held almost unchanged around 99.60 yen.
The Australian dollar tumbled after the Reserve Bank of Australia announced its left interest rates at 2.75 percent and kept the door open to further interest rate cuts.
AUDUSD dropped to $0.9157 from the session high of $0.9248.
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