Opened in Asia at $1.0445 gapping higher from the NY close on Friday of $1.0358 on the back of strong Chinese Mfg PMI which was released on Saturday with at 1yr high reading of 53.1. After early stops were flushed through $1.0450 to $1.0470, the pair then turned away from large offers lying up at $1.0480 and drifted back with the euro to around $1.0420.
Poor housing approvals which fell 7.8% against, expectations of +0.5%, then accelerated a fall to $1.0386. Market analyst consensus is for no rate change from the RBA rate tomorrow, but there is some suggestion that a cut may not surprise after calls from the mining industry. EUR/AUD gapped down on opening at A$1.2803 from A$1.2892 but has built steadily higher in the session to A$1.2843. AUD/NZD opened at NZ$1.2688 from NY’s close of NZ$1.2651 and drifted back to NZ$1.2661 before bouncing again to NZ$1.2702. AUD/JPY opened Y86.73 from Y85.75 and eased to Y86.30 before recovering again to Y86.77 on a weaker Tankan survey from Japan which bolstered USD/JPY, the pair later settling around Y86.40.
EasyForexNews Research Team