17 Jun 2014
Asia Recap: RBA minutes sends AUD lower
FXStreet (Bali) - The minutes of the RBA weakened the Australian Dollar, which ends the Asian session as the worst performing currency after the slightly more dovish RBA tone.
AUD/USD opened around the 0.94 magnet area, with selling pressure starting right from the get go of the Tokyo open only to accelerate following the RBA minutes statement.
Other than the old line that policy was likely to stay accommodative, the RBA made reference to a sharp fall in consumer confidence, while also said that for the time being, "is difficult to judge if low rates enough to offset mining investment, fiscal tightening." With regards to the AUD, the central bank reiterated that "the A$ is high by historical standards, given fall in commodity prices."
USD/JPY extended its US late rebound by briefly breaking above the 102.00 before stabilizing just below the level. Meanwhile, NZD/USD traded on a weaker note, testing bids around 0.8650 after the double topside failure seen at the 0.87 handle post the RBNZ rate hike. GBP/USD was also slightly lower, at 1.6962 last however, technical indicators continue to suggest bulls remain in control. Lastly, EUR/USD came to test 1.3580 resistance but failed.
On other fundamental news of the session, Japan published its growth blueprint (from Monday), aimed at reviving the economy. Shell announced to sell $A6.1bn of shares of Woodside, news that were seen as a negative input for the Aussie. Bank of England’s Miles said that he may vote in favour of rising rates before the end of his term. Member of the BoJ Mr. Hamada also crossed the wires, saying that "BOJ doesn’t need to ease further at the moment." Lastly, Australia's new motor vehicle sales for May stood at +0.3% vs 0.1% last.
Main headlines in Asia
Japan: Will GPIF assets re-allocation under-deliver?
China: Targeted RRR cut extended to some larger banks - Nomura
RBA minutes: Dificult to judge if low rates enough to offset mining investment
China FDI - Foreign Direct Investment (YTD)(YoY): 2.8% (April) vs previous 5%
RBNZ fails to hint pause of tightening in July - BNZ
AUD/USD opened around the 0.94 magnet area, with selling pressure starting right from the get go of the Tokyo open only to accelerate following the RBA minutes statement.
Other than the old line that policy was likely to stay accommodative, the RBA made reference to a sharp fall in consumer confidence, while also said that for the time being, "is difficult to judge if low rates enough to offset mining investment, fiscal tightening." With regards to the AUD, the central bank reiterated that "the A$ is high by historical standards, given fall in commodity prices."
USD/JPY extended its US late rebound by briefly breaking above the 102.00 before stabilizing just below the level. Meanwhile, NZD/USD traded on a weaker note, testing bids around 0.8650 after the double topside failure seen at the 0.87 handle post the RBNZ rate hike. GBP/USD was also slightly lower, at 1.6962 last however, technical indicators continue to suggest bulls remain in control. Lastly, EUR/USD came to test 1.3580 resistance but failed.
On other fundamental news of the session, Japan published its growth blueprint (from Monday), aimed at reviving the economy. Shell announced to sell $A6.1bn of shares of Woodside, news that were seen as a negative input for the Aussie. Bank of England’s Miles said that he may vote in favour of rising rates before the end of his term. Member of the BoJ Mr. Hamada also crossed the wires, saying that "BOJ doesn’t need to ease further at the moment." Lastly, Australia's new motor vehicle sales for May stood at +0.3% vs 0.1% last.
Main headlines in Asia
Japan: Will GPIF assets re-allocation under-deliver?
China: Targeted RRR cut extended to some larger banks - Nomura
RBA minutes: Dificult to judge if low rates enough to offset mining investment
China FDI - Foreign Direct Investment (YTD)(YoY): 2.8% (April) vs previous 5%
RBNZ fails to hint pause of tightening in July - BNZ