PBoC sets yuan reference rate at 6.8575 (prev 6.8870)
Fed's Bullard: December hike looks reasonable
Rising AUD could complicate economic transition
Says judged steady policy consistent with growth and inflation targets
Says global economy growing at lower than average pace
Says Chinese economy has steadied
Large supply of apartments to come on stream in next couple of years
RBA says home prices rising briskly in some markets
Global outlook for inflation more balanced than "for some time"
Commodity prices have risen, supporting rise in terms of trade
Expects a slower annual growth rate before a pick up
The RBA decided on interest rates overnight, and left them unchanged, as expected by the market. The statement also did not include any surprises, and there was not much of a reaction in the Australian Dollar. AUD/USD opened around 0.7480 in Asia and declined to a low of 0.7445 later in the session. The New Zealand Dollar came under pressure yesterday after Prime Minister Key suddenly resigned. However, it managed to recover from this and rallied to 0.7150 yesterday. In Asia, it slightly extended gains, to 0.7160.
The market shrugged off the Italian referendum result, and the Euro recovered. EUR/USD rose from 1.0505 to 1.0785 yesterday, and in Asia, it consolidated in a 1.0750-70 range amid light flows.
USD/JPY came under pressure following another failure at 114.80 resistance yesterday, and declined to 113.10. In Asia, it recovered and rose to a high of 114.00. Key support is seen at 112.80/85, while the big resistance area to watch remains 114.80-115.00.