AUD Takes Hit As RBA Stays Patient On Rates

The Aussie dollar went offered as the RBA signalled patience as it monitors inflation dynamics. The Bank called quits on its QE programme (as expected), but stressed that "ceasing purchases under the bond purchase programme does not imply a near-term increase in interest rates." The RBA's pushback against market wagers for earlier cash rate hikes provided a bit of a surprise, pulling the rug from under the AUD in otherwise muted Asia-Pac trade.

• AUD/NZD took a nosedive after printing a fresh seven-month high at NZ$1.0758 earlier in the session. The round figure of NZ$1.0700 limited post-RBA losses.
• Apart from post-RBA price swings, G10 currency pairs stuck to tight ranges, as widespread Lunar New Year market closures weighed on activity in Asia.
• Manufacturing PMI readings from across the globe headline the data docket today, with EZ unemployment & Canadian GDP also due.