Asian Session – Aussie recovers after RBA minutes downplay rate cut

Aussie RecoversCurrency markets went nowhere during the Asian session on Tuesday, trading in tight ranges. The Australian dollar was the only G10 currency that moved.

The Aussie got a big boost after the release of Reserve Bank of Australia July policy meeting minutes.  The central-bank’s tone was a little less suggestive of near-term easing than markets had expected. Thus, the less the likelihood of a rate-cut soon led to demand for the currency.

AUDUSD rose to a session high of $0.9193, up from a low of $0.9085, gaining over one percent in the session.

The euro traded sideways, with EURUSD little changed from late Monday and hovered around $1.3070.

The single currency has proven to be quite resilient in the last few days and has remained above the key $1.3000 level but the downside risks remain especially due to the contrasting policies of the ECB and the Federal Reserve.

Coming up in the European session, euro zone data will be in focus. The ZEW Institute economic sentiment index, a leading indicator of economic health, will be released for Germany as well as for the wider euro zone. Also the euro zone is to release data on consumer price inflation.

Sterling did little during most of the session after GBPUSD opened at $1.5098 but then got a lift to  $1.5131 at the end of the session. Focus will be on U.K. inflation data due later today.

The yen ended flat, with USDJPY seeing  negligible movement  and finished slightly below the open down at 99.74 yen.

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  • European Session – Dollar rebounds; U.S. data in focus The dollar received some relief from the sharp sell-off two days ago, as investors returned to buy it back at a better bargain. Many expect the greenback to remain bullish especially against the euro, due to the difference in performance between the economies of Europe and the U.S. Despite Fed Chief Ben Bernanke saying on Wednesday that he would…

  • RBA Says Rate Appropriate After Aussie Drop, Has Room to Cut RBA Says Rate Appropriate After Aussie Drop; Currency Gains By Malcolm Scott – 2013-07-16T03:02:51Z Australia ‘s central bank said the currency’s decline and past interest-rate cuts meant its policy setting was appropriate even as it maintained room for future reductions, according to minutes of its July 2 meeting.

  • Currencies: Asia currencies in focus as dollar stays in range By Michael Kitchen , MarketWatch LOS ANGELES (MarketWatch) – Asian currencies took the forex spotlight Tuesday, as the U.S. dollar and its European rivals stuck to tight ranges. In particular, the Australian dollar got a solid bump after the release of central-bank meeting minutes, while the Indian rupee jumped after the country’s own monetary…

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