The Aussie Dollar rallied overnight, after better than expected employment data. AUD/USD jumped from 0.7240 to 0.7330 immediately after the release, but failed to sustain momentum above 0.73 and eventually fell to a low of 0.7280. AUD/NZD rose has been under pressure in the early Asian session and fell from 1.0870 to 1.0710 after the RBNZ statement. However, it reversed some of the losses after the Australian data was released and recovered to 1.0840.
The RBNZ cut the main rate by 25 bps to 2.50 %, as expected, but the monetary policy statement was less dovish than expected. The central bank expects that one rate cut will be enough to push inflation to their target range, while the market was expecting hints for further easing in 2016. NZD/USD cleared the stops below 0.66 immediately after the rate cut, but then jumped to 0.6755. In the Asian session, it consolidated in 0.6720-80 range.
USD/JPY has been under pressure amid liquidation of long positions from leveraged funds and the break below 122.20 and eventually 121.80 triggered a decent amount of stops. The pair extended losses to as low as 121.10 in yesterday's US session. In Asia, it was able to recover slightly and rose to 121.70.
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