- Tokyo holiday ensured very quiet trading conditions
- RBNZ left policy unchanged but changed the langauge somewhat, further diminishing the chances of a rate rise before June
- Well known RBA watcher Terry McCrann thinks they will hike next week
- Kospi -0.5%, All Ords -0.5%. Gold -0.5% at $1166/oz
It has been a very quiet day in Asia minus Tokyo where the golden week began.
The NZD fell 50 pips in early trade after the RBNZ statement and this dragged the AUD/USD lower with it. The NZD/USD fell immediately to .7170 from .7220 and has failed to recover properly. The AUD/USD has been otherwise very quiet in a 30 pip range. Ranges: AUD/USD .9224/54.
USD/JPY and the JPY crosses have been quiet soft during the session led by NZD/JPY and GBP/JPY selling. With Tokyo out there have been no major anouncements or flows. Ranges: USD/JPY 93.86/94.17, EUR/JPY 123.76/124.38
Sterling has been weakened today by renewed rumours that the ratings agancies are soon to downgrade UK debt. EUR/GBP has rallied almost 50 pips which is a big move for Asia and GBP/JPY has fallen a big figure. Volumes were quite low it should be noted. Ranges: cable 1.5149/1.5207, EUR/GBP .8677/.8723
EUR has been supported by EUR/GBP buying but weighed on by EUR/JPY selling with a net result of very little movement. The focus in Europe will again be on the PIIGS and their ratings woes. Range: 1.3185/1.3218.
Markets: HK -0.1%, Kospi -0.5%, Sydney -0.5%. Gold $1166/oz.
