Forex Market Review – Aussie surges after RBA keeps rates on hold; EURAUD at record low

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EURUSD dipped slightly lower after opening in Asia at 1.3128, heading down to 1.3088. Uncertainty still prevails in the market over lack of political consensus in Athens on reforms needed for a bailout package that will prevent Greece from a default in mid-March. Greek policy makers will resume negotiations today with the troika (European Commission, IMF and ECB).

Euro tumbled to a record low against the aussie, with EURAUD falling to 1.2130 after the Reserve Bank of Australia unexpectedly held its key benchmark cash rate unchanged.

The Australian dollar jumped to its highest level in six months against the US dollar after the RBA rate decision. Expectations were for a rate cut from the current 4.25 percent to 4.0 percent. AUDUSD soared to 1.0806 from 1.0700, the highest level since August 2.

USDJPY has been rangebound since Friday. Dollar remains supported above 76.50 from fear of a possible intervention from the Bank of Japan.  USDJPY opened in Asia today at 76.53 and ticked up to 76.77.

 

GBPUSD tracked movements of the EURUSD and edged down from 1.5817 to 1.5795.