Australian Dollar
The Aussie dollar opened firmer at .7675 this morning, after plummeting to .7640 overnight, as investors were more than willing to buy the long-awaited dip in US stocks, supporting risk appetite. On the surface, it would appear that the Aussie dollar has been doing little more than been echoing broader risk appetite. But it was also the beneficiary of the weaker US housing data, as despite two rate hikes since December, the market still views the Fed as dovish, and the weaker-than-expected housing data supported this bias.
Japanese Yen
USDJPY teased with 111.00 level on haven flow. With the weak US housing data, along with a sagging USD, it took little more than a feather duster sweep to take out support. This triggering stops on the way to 110.80 before the pair regained some composure and for risk appetite to re-emerge.
New Zealand Dollar
RBNZ announced that its policy rate (the OCR) will remain at 1.75%, as was widely expected by the market. In typical knee-jerk fashion, and one can never be sure why, the Kiwi sold off 20 pips before pulling back. After glossing over the accompanying statement, there is nothing to suggest a change in the Bank's neutral bias. Inflation is still expected to return to the midpoint of the Bank's target range over the medium term.
Euro
The market continues to consolidate at the top of the recent ranges as dealers remain on edge ahead of Thursday's healthcare vote. With little on the economic calendar, traders remain glued to the shifting tides of the healthcare negotiations
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