4 Feb 2014
Asia Recap: RBA-driven AUD bid to the boots
FXStreet (Bali) - The Australian Dollar was the big winner in Asia, after the RBA re-adjusted its semi-easing bias to a complete 'neutral' stance.
The Aussie saw overwhelming buying interest, resulting in a rally of more than 1 cent, after the RBA said on its statement "on present indications, the most prudent course is likely to be a period of stability in interest rates."
On top of that, another key driver for the AUD was the omission of any reference to the Aussie being overvalued. The AUD/USD completed its 150 pips run by taking out some stops above 0.8890 before stabilizing.
The Japanese Yen traded in a tight range, consolidating the volatile moves from Monday, in which the breakout of 102.00 against the US Dollar, coupled with a bloodbath in US stocks led to a new 10-week low in the pair.
Main headlines in Asia
QE Taper, bad US data starting to prove toxic
Fed study argues against US labor market deterioration
BoJ Kuroda testimony to parliament a non-event
RBA softens rhetoric, period of stability in rates
AUD buyers take full control post RBA
The Aussie saw overwhelming buying interest, resulting in a rally of more than 1 cent, after the RBA said on its statement "on present indications, the most prudent course is likely to be a period of stability in interest rates."
On top of that, another key driver for the AUD was the omission of any reference to the Aussie being overvalued. The AUD/USD completed its 150 pips run by taking out some stops above 0.8890 before stabilizing.
The Japanese Yen traded in a tight range, consolidating the volatile moves from Monday, in which the breakout of 102.00 against the US Dollar, coupled with a bloodbath in US stocks led to a new 10-week low in the pair.
Main headlines in Asia
QE Taper, bad US data starting to prove toxic
Fed study argues against US labor market deterioration
BoJ Kuroda testimony to parliament a non-event
RBA softens rhetoric, period of stability in rates
AUD buyers take full control post RBA