Tuesday, February 18, 2014

ECB's Nowotny: The Bond Buying Program was not of Major Importance due to an Improved Economic Situation

Safe haven currency pairs:
AUD/USD 0.8980 – 0.9075
NZD/USD 0.8305 – 0.8400
GBP/AUD 1.8465 – 1.8555

Hello folks, let's start, The Australian dollar opened the week stronger than last at 0.9060 on the back of strong Chinese data and statements out of the US from newly appointed Fed Reserve Chair Janet Yellen. The Aussie spent the morning drifting lower against its US counterpart on the back of poor domestic data, reaching lows of 0.9041 in the Asian session.

New motor vehicle sales fell 3.5 per cent whilst just over 3,000 less vehicles were sold in January compared with December last year. The Aussie however found some steam just after midday climbing back above opening levels reaching highs of 0.9067, ending the Asian session 5 points lower than the open at 0.9055. Overnight the Aussie traded within a tight range as there were limited volumes in the market due to Presidents day in the US.

This morning the AUD opens slightly weaker against the Greenback at 0.9028. Today all eyes will be on the Monetary Policy Meeting minutes released domestically this morning

From Eurozone, The Euro remained strong backed again by impressive euro zone 4
th Quarter data which gave further guidance as to the European Central bank's decision on monetary policy during the next meeting. ECB member Nowotny stated that the bond buying program was not of major importance due to an improved economic situation. The Euro gained just under a quarter of a per cent against the GBP to 0.8194 whilst also stronger against the US opening today higher at 1.3704.

Meanwhile, The Japanese Yen lost ground against the US early on Monday after worse than expected 4th Quarter GDP figures. The growth was halted to 0.3 per cent which was substantially short of the 0.7 per cent forecast. This data firmed expectations that further stimulus from the Bank of Japan is still to come and eyes will be firmly focused as they meet today which will give further guidance

Source: ozforex

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