Closed in NY at $0.9695, after rate had seen initial NFP react lows of $0.9581 before spiking back to $0.9723. Rate got an early lift to $0.9707 into local trade, the move seen in tandem with EUR/USD, before turning lower. Comments from Australian Treasurer Wayne Swan that the budget had given the RBA more room to move on rates, as well the use of deficits seen as a potential tool to battle any news crisis (which drew warnings from S&P that Australia could lose its AAA status if the govt abandoned its budget surplus) acted to press the Aussie lower, the rate trading down to $0.9626 before recovering, the rate able to step its way to $0.9775 into early Europe. Market expecting the RBA to cut rates by 25bps Tuesday, following the last meeting’s 50bp cut. Strong demand seen on approach to $0.9600. Offers $0.9725/35.
EasyForexNews Research Team