Article Highlights

  • NZ ANZ commodity price index at 1.2% vs. 1.0% previous
  • RBA maintains rates at 2.50% and drops easing bias
  • BOJ’s Kuroda: 2% CPI expected at the end of 2014 fiscal year and early 2015
  • Nikkei hit by US market selloff, closes down 4.18% at 14,008.47
  • UK construction PMI on tap
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We saw a classic V-pattern on today’s major currency pairs as investors react to different market movers. A spillover from the U.S. session selloff brought EUR/USD back to 1.3500 and GBP/USD, AUD/USD, and NZD/USD to their new weekly lows at the start of the session.

Luckily for the bulls, the Reserve Bank of Australia (RBA) stole the spotlight halfway through the session. The central bank decided to keep its rates to its 2.50% record low but also dropped its easing bias. Apparently, the RBA now believes that a “period of stability” is prudent.

The change is stance was enough not only to boost AUD/USD to its two-week highs but also inspire a mini intra-session reversal among major currency pairs. EUR/USD is now above yesterday’s close while USD/JPY and NZD/USD are trading above major support levels (101.00 and .8100 respectively)

The day’s not over yet! At 10:30 am GMT the U.K. is set to print its construction PMI numbers. The report is expected to show an index reading of 61.5, down from last month’s 62.1. A disappointing reading could add to the disappointment in yesterday’s manufacturing PMI and bring the pound lower across the board.

See also:

U.S. Session Recap

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