AUD drops after RBA cautions on strong currency

November 4, 2013

The Australia dollar was soggy today after being hit lower on remarks from the Australian central bank. The Reserve Bank of Australia announced it left its key interest rate at 2.5 percent but said that the value of the currency is too high for a stable economic recovery.

This caused a selloff in AUD, which fell to a session low of $0.9462 after having hit a high of $0.9520.

The euro eased about 1 percent against the US dollar, hovering near a seven-week low, to end the Asian session at $1.3496.

A speech by ECB Chief Mario Draghi later today is keeping market participants cautious in case he makes dovish comments. Also the expectation of a rate cut by the ECB before the end of the year is keeping the single currency under pressure.

The yen gained during the Asian session on safe haven demand. USDJPY dropped from 98.68 to around 98.50 yen. The greenback came under pressure after some comments from Federal Reserve officials that signaled the Fed may not scale back stimulus before the end of this year. The current bond buying program is negative for the USD.

Publication source
FxNet information  FxNet reviews

October 21, 2016
EUR/USD remained unchanged after the ECB
The price maintained its bearish tone on Thursday. The EUR/USD pair stayed around its recent lows during the day. The euro slightly strengthened towards 1.1000 ahead of the US opening. The 50-EMA limited the euro recovery in the 1 hour chart...
October 21, 2016
Decisions on QE Postponed until December
Asian stock markets are narrowly mixed, with Japanese bourses managing marginal gains as the Yen falls against the Dollar. Stock futures in the U.S. are down...
October 21, 2016
EURUSD at $1.09, but declines could be limited
The ECB monetary policy meeting yesterday saw the euro give up its intraday gains to close on a bearish note. As Draghi signaled that the central bank would need time to assess the monetary policy situation...

Fort Financial Services Rating
HYCM Rating
FBS Rating
Grand Capital Rating
HotForex Rating Rating

365BinaryOption Rating
TropicalTrade Rating
OptionRally Rating
TopOption Rating
OptionFair Rating
OptionBit Rating