Fundamental Analysis, Fundamental Analysis Forex
December 3, 2013 @ 9:04 am

Australian Dollar Falls After RBA Remarks That AUD Value Is Too High

The main economic news during the Asian session was out of Australia, with various headlines and data giving the Aussie a rollercoaster ride.

Australian retail sales were better-than-forecast, lifting the AUDUSD to an early session high of $0.9133. Then the Reserve Bank of Australia knocked aussie lower. Even though rates were kept on hold as expected at 2.5%, the RBA statement that the currency value is ‘still uncomfortably high,’ caused a sell-off. After tumbling to $0.9056, aussie bounced to end the session at $0.9090.

USDJPY moved higher to a fresh 6-month high of 103.11 yen by the end of Asian session trading and continued higher as the European session came around. The Tokyo Nikkei was also slightly up by 0.6%, closing at 15,750 points. Again, the main cause of yen weakness continues to be loose Bank of Japan monetary policy.

The euro fell after it hit $1.36 on Monday and was unable to sustain such a high level, prompting profit-taking especially on the back of soft factory activity data for Spain and France. ECB decision on Thursday will be keenly watched. EURUSD ended in Asia at $1.3551.

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