AUD/USD lifted by RBA no rate change decision

AUD/USD opened in Asia at 0.7769 and was initially under pressure ,down from 0.7778 to 0.7751 ahead of the RBA policy announcement as expectations were for a rate cut. However, the central bank surprised markets and left the main overnight cash rate unchanged at 2.00 percent after having cut it in February by 25 basis points. The aussie surged to 0.7823 ahead of the official announcement with some citing a possible leak. It fell back to 0.7800 before rising again to 0.7845 on the official rate announcement.

NZD/USD closed in New York at 0.7509. After narrow range trading of 0.7500-15 it rose up to 0.7527 pre-RBA. Post-RBA saw it up more to 0.7547 but with gains limited as AUD/NZD spiked up from 1.0321 to 1.0389.

USD/JPY fell back as a weaker than expected Nikkei following the big Wall Street rally overnight impacted. From 120.27, USD/JPY fell to just shy of 120.00. Another leg down to just below 120.00 was followed by a steeper push to 119.59 as long positions were closed to book recent profits. Yesterday’s mixed US data also weighed. EUR/JPY, already on the back foot, fell back from 134.42 to 133.87. GBP/JPY fell from 184.71 to 183.86. AUD/JPY bucked the trend, rallying from 92.94 pre-RBA to 93.75 post as the RBA chose to leave its rate unchanged.

EUR/USD opened in Asia at 1.1185 after failing to move higher yesterday despite good Euro zone data and worse than expected US data. Barely trading in Asia with the focus elsewhere, it could only manage a 1.1176-99. The trend remains down but the market could stagnate ahead of the ECB meeting Thursday and key US non-farm payrolls report Friday.

GBP/USD bounced from an early low of 1.5356 to 1.5382 in Asia on broad USD sogginess led first by USD/JPY sogginess and then the surge in AUD/USD. EUR/GBP treaded water between 0.7276-82.

USD/CHF fell a leg from 0.9586 to 0.9559 in sympathy with USD/JPY. EUR/CHF treaded water between 1.0702-14, awaiting Europe’s return.

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Source:: AUD/USD lifted by RBA no rate change decision

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