RBA Holds Cash Rate At 3.50%

RBA Holds Cash Rate At 3.50%


Forex trading was relatively subdued in the Asian session as the markets wait for the results of the US presidential election. Asia regional indices were mixed as the Nikkei fell 0.49, Hang Seng 0.44 and Shanghai down 1.31. EURUSD was range bound but climbed to 1.2805 on the back of comments from ECB Constancio on the resolution of Spanish collateral issues. JPY was slightly bid for most of the session as the USDJPY traded down to the 80.00 handle and was unable to pick up any lasting bullish tone. EURJPY a solid risk barometer fell further in Asia on renewed worries over Greece and Spain. Currently the race looks too close to call, although President Obama seems to have picked up a marginal lead. Should Obama win, we would anticipate a pullback in USD strength as the outlook would feel less uncertain.