• RBA cut interest rates by 25bps to 4.25%, citing slowing global growth as the main concern
    • Australian Q3 current account deficit -AUD5.6 billion, as expected
    • UK November retail sales -1.6% YoY
    • Asian Development Bank sees greater downside risks for the Asian economies
    • No major pronouncements on the EU debt situation
    • Regional equity markets 1.25%; Gold -1% to $1716/oz

    Somewhat of a ‘risk-off’ day in Asia after S&P threatened to put the whole of Europe on negative watch.

    AUD/USD was the main focus of attention but it traded in a fairly tight range between 1.0230/70 for the majority of the session pre-RBA. The pair fell below 1.0200 immediately after the announcement and has spent much of the last few hours consolidating those losses. Bids at 1.0180 held for a lengthy period but stops below 1.0160 are being threatened as I write. Range: 1.0165/1.0271

    EUR/USD has traded with a heavy tone for much of the session but has been unable to break through bids at 1.3360. There have been no major announcements regarding the EU debt situation. Range: 1.3360/1.3404

    USD/JPY 77.67/85; Cable 1.5614/49; USD/CHF .9196/.9230.