- Latest RBA monetary policy meeting minutes released
- Slightly more dovish than expected with reference to tigher policy dropped
- Trichet reiterates warning against Greek default
- Moody’s may cut BNY Mellon and JP Morgan ratings
- Chinese ratings agency says AUD not a safe haven asset
- Stockmarkets fall by under 0.5% on average with bank stocks leading the way lower
- Gold steady above $1600/oz
Another fairly quiet session with only the AUD providing some mild volatility.
AUD/USD opened in Asia below 1.0600 but sneaked higher throughout the morning as the market was wary of getting caught short AUD in case of a bullish RBA statement. AUD/USD traded to highs around 1.0650 but fell back swiftly when the slightly dovish statement raised possibilities that the next interest rate move might be down rather than up. It fell to 1.0607 before steadying around 1.0625 for the remainder of the session. Ranges: 1.0596/1.0650
EUR/USD opened at 1.4105 and spent the first two hours in a 5 pip range. The rest of the session hasn’t been much better with no news of note emerging. Range: 1.4093/1.4136
EUR crosses are sitting just below important short-term resistance levels at 1.1550 in EUR/CHF, .8800 in EUR/GBP and 112.00 in EUR/JPY and a move above all of these levels might set off further short covering ahead of Thursday’s EZ meeting. If all levels hold then the EUR sentiment will stay heavy.
Cable range 1.6041/80, USD/CHF .8149/.8182, EUR/CHF 1.1511/46, EUR/JPY 111.44/78 and USD/JPY 78.95/79.14
