Asian Session – Australian dollar falls on possible interest rate cut
July 30, 2013 6:20 am
The Australian dollar took the spotlight today as it tumbled against most major peers following weak data and comments by the Reserve Bank of Australia’s governor.
AUDUSD began the Asian session at $0.9203 and began its decline after weak industrial production figures. The fall accelerated to $0.9059 after RBA Governor Stevens speech when he signalled there is still room for interest rates and the currency to fall.
Stevens said that the RBA still has some scope to ease after inflation data and added that the recent decline in the Australian dollar makes economic sense and he would not be surprised if it fell further.
The yen weakened against most of its major peers, triggered by disappointing data which showed household spending in Japan fell last month and industrial production dropped 3.3 percent.
The broadly weaker yen helped USDJPY rebound from a one month low of 97.62 hit yesterday. The pair opened in Asia at 97.93 and rose to a high of 98.45 yen.
The euro and the pound both weakened but focus was off these currencies during the Asian session today and investors were trading elsewhere.
There is some cautions ahead of the European Central Bank meeting and Bank of England meeting in two days.
EURUSD moved very little and traded between $1.3246 and $1.3265. GBPUSD opened at $1.5336 and slid to $1.5314.
The Australian dollar took the spotlight today as it tumbled against most major peers following weak data and comments by the Reserve Bank of Australia’s governor.
AUDUSD began the Asian session at $0.9203 and began its decline after weak industrial production figures. The fall accelerated to $0.9059 after RBA Governor Stevens speech when he signalled there is still room for interest rates and the currency to fall.
Stevens said that the RBA still has some scope to ease after inflation data and added that the recent decline in the Australian dollar makes economic sense and he would not be surprised if it fell further.
The yen weakened against most of its major peers, triggered by disappointing data which showed household spending in Japan fell last month and industrial production dropped 3.3 percent.
The broadly weaker yen helped USDJPY rebound from a one month low of 97.62 hit yesterday. The pair opened in Asia at 97.93 and rose to a high of 98.45 yen.
The euro and the pound both weakened but focus was off these currencies during the Asian session today and investors were trading elsewhere.
There is some cautions ahead of the European Central Bank meeting and Bank of England meeting in two days.
EURUSD moved very little and traded between $1.3246 and $1.3265.
GBPUSD opened at $1.5336 and slid to $1.5314.
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