- Lack of jawboning sends AUD higher
- Nikkei closes up by 0.37% at 14,447.16
The Aussie was the star of today’s Asian session as RBA Governor Glenn Stevens took center stage. While Stevens had warned of the risks in rising home prices and the lack of inflationary pressures, market players had paid more attention to the positive things that he had to say.
For one thing, Stevens hinted that the Australian economy would soon turn to domestic consumption instead of being led by the mining sector. The central banker also believes that growth will strengthen in late 2014 and will pick up further in 2015. Last but definitely not the least, Stevens reiterated the RBA’s statements that a “period of stability” in interest rates is prudent for the time being.
The lack of jawboning sent AUD/USD to the .9200 handle while other Aussie crosses also experienced significant gains. Even NZD received a small boost as it’s trading around 20 pips higher than its open price. European currency pairs like EUR/USD, GBP/USD, and USD/CHF weren’t so lucky, however, as they all edged lower despite a round of risk appetite in the markets.
Let’s see if the euro and the pound bulls pick up the slack during the London session. A few minutes ago the GfK German consumer climate printed a reading of 8.50, in line with the previous release and current expectations. Meanwhile, the UBS consumption indicator clocked in at 1.57, up from last month’s upwardly revised 1.49 reading.
Only Italy’s retail sales and CPI reports at 9:00 am GMT and 10:00 am GMT respectively are scheduled for release today. These reports don’t usually influence the euro’s price action so make sure you also have your eyes peeled on the newswires in case we see reports that could influence risk appetite!
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!