ForexLive Asia FX news wrap: RBA intervention comment knocks the AUD lower

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading Thursday 13 November 2014

The sharp mover today was the AUD, which fell 60 points on comments from RBA Assistant Governor (Economic) Christopher Kent. The AUD had been edging up in response to his published speech, which was vanilla stuff we’ve heard many times before (like “AUD above estimates of fundamental value given falling resource prices”), but it was the Q&A where he dropped the “I” word, saying the RBA had not ruled out FX intervention (see bullets, above). That was enough to wake the market up, with longs getting the liquidation treatment as the market quickly sliced 60+ points from the AUD/USD.

AUDUSD chart showing the fall on the RBA's Kent's comments on intervention on 13 November 2014

Elsewhere across the currency markets it wasn’t action-packed. EUR/USD edged generally a little higher on the session, gaining nearly 30 or so points. Cable was flat. Even the yen was subdued, with USD/JPY and EUR/JPY nevertheless managing small gains on the session.

Gold did manage a good bounce for early lows, adding nearly $10 from session lows to up a little on the day. Its near session highs and on a bit of a tear as I write.

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