The pair started this morning in Sydney at $0.7766, toward the low end of the $0.7756 to$0.7845 range seen yesterday, the greenback rising on higher US Treasury yields and slightly lower commodity index (down 0.4%). Early local data were largely ignored with the market focused on the RBA decision later in the session. Aussie-dollar held near $0.7750 through the early hours but saw a minor uptick to $0.7765 immediately after Jan building approvals data surprised to the upside. The rate extended gains further to around $0.7779 ahead of the RBA decision but caution prevailed and further moves were curtailed. The rate saw a sharp move up through $0.7800 just minutes before the RBA announcement, which some players attributed to a jittery trading desk cancelling a large order and the rate then followed up with further gains to $0.7842 as the RBA kept rates on hold. That move ran into minor sellers at $0.7845 and aussie-dollar then slipped back toward $0.7800. The aussie last trades at $0.7823.
