AUD tumbles after RBA cuts rates, yen strengthens again

May 3, 2016

Article by ForexTime

The US dollar weakened further in Asian trading on Tuesday, falling to a fresh 18-month low against the yen, breaking below the 106 yen level.

The US dollar index, a measure of the US currency against a basket of global peers, was down 0.1 per cent this morning, hovering around a 16-month low of 92.518. It was on pace for a seventh straight session of declines, the longest since a seven-day drop in April last year.

The euro also responded to the downward move for the dollar, rising through $1.15 for the first time since August to reach $1.1540.

The price of gold surpassed $1,300 an ounce for the first time since January 2015, and was up 0.2 per cent at $1,294.17 in Asia.

The Australian dollar had a roller coaster session. Against the US dollar, the aussie rose as much as 0.6 per cent to US$0.7710 ahead of the Reserve Bank of Australia’s monetary policy decision, and was also supported by data showing Australian building approvals contracted by a slower-than-expected annual pace in March.


Free Reports:

Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter





Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.





However, the aussie tumbled 1 percent on the news that the RBA cut its benchmark rate by 0.25 basis points to 1.75%. AUDUSD dropped to $0.7554.

 


Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com