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RBA kept rate unchanged, as widely............>

FOREX
MNI (London)
FOREX: RBA kept rate unchanged, as widely expected, maintaining its neutral bias
as widely expected. Aud/Usd did touch $0.7701 on release but quickly pared those
gains though the balance of Asia. A strong surge in the Nikkei, with other
regional bourses also pushed higher (improved global growth and earnings along
with supportive fiscal and monetary policy were seen as drivers), helped to push
Usd/Jpy back above Y114.00. This move provided the lead for a general Usd
recovery into Europe. German Industrial Production came in weaker than forecast,
following on from Monday's release of strong German Factory Orders data,
provided the early catalyst which took Eur/Usd back below $1.1600, eventually
broke key technical support at $1.1575(Oct27 low) before triggered stops
extended move to $1.1566. Large expiry ast $1.3150 in cable saw rate anchored in
a tight range around this level, in turn allowed Eur/Gbp to track Eur/Usd
slippage. Cross managed to make a show under Gbp0.8800 as was trading heavy late
morning. Usd/Jpy extended its recovery to Y114.34 and was holding most of its
gains ahead of NY. A fairly light data calendar into the NY session with market
drive to be provided by Usd strength.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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