The currency is holding steady versus the U.S. currency ahead of the release of minutes for the June 5 meeting by the Reserve Bank of Australia when it slashed the cash rate target by 25 basis points to the lowest level since 2009, citing worries about the spread of the debt crisis in Europe and a slowdown of the Chinese economy. Investors also watch closely developments in Spain for implications for risk sentiment after yields on Spanish 10-year yields hit a record 7.29% on Monday. Greece, Ireland and Portugal all filed for international bailouts after their 10-year yields topped 7%. Spain will sell 12- and 18-month bills today. The rate is at $1.0124 versus $1.0124 in late New York on Monday when it hit $1.0142 on reduced concerns about a break-up of the euro. It is at Y80.10 versus Y80.09 on Monday.
EasyForexNews Research Team