Opened in Asia at $1.0359 after lows in NY of $1.0341, but remains in the broader range of $1.0300-1.0450 and lagged the euro as EUR/AUD bounced yesterday from A$1.2600 to A$1.2678. A fairly quiet session was seen this morning in Asia with AUD rising from early lows of $1.0349 to $1.0388 following a Xinhua PBOC article and talk of a possible RRR cut. Some market experts however now suggest little need for the PBOC to cut, although traders are eyeing the forthcoming May 11 China CPI data as well as next week’s aussie CPI. Aussie later to $1.0355 before settling around $1.0365. AUD/JPY saw some Toshin demand cited, rising from early lows of Y84.11 to Y84.53 before easing back to Y84.35. AUD/NZD slipped from NZ$1.2706 to NZ$1.2666 before settling around NZ$1.2680. Ex PBOC adviser Li stated China’s reserve diversification into Australia needed to be gradual, but that Australia was key to its program. WSJ said PM Gillard will today put pressure on the RBA to cut rates to alleviate pressure on non-mining areas of the economy. Aussie bids $1.0340/50, stops below ahead of larger at $1.0300/10. Offers at $1.0400/20 cap the topside.
EasyForexNews Research Team