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.
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