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Asia Recap: AUD unfazed by neutral RBA

FXStreet (Bali) - A lively Asian session presenting some decent moves across G10 currencies, with the US Dollar the best performer, recouping some of Monday's losses, while the Kiwi was the main laggard.

The Australian Dollar finished Asia off recent highs, at 0.8750, yet found willing buyers on the minor dip after the RBA left rates unchanged at 2.5% record low. The Central Bank kept its neutral tone, while highlighting that the AUD remains high by historical standards, despite the sharp fall (5% approx.) since the last meeting.

The Kiwi traded soft from the get go although managed to hold above 0.78. A downbeat NZIER business confidence report (QoQ), down to 19% vs 32% failed to add bear pressure, however, as soon as Tokyo came online, NZD/USD slid toward 0.78, area that was lost but later regained after NZ published a wider-than-expected budget deficit, which coupled with comments from NZ FinMin, noting that "the high exchange rate remains challenging for exporters", weighed on the Kiwi.

The US Dollar, without any specific news to account for, gained a solid bid tone across the board in early Tokyo, as traders felt compelled to reinstate USD long positions at reasonably attractive levels following the sharp down-move from Monday, in what is still seen as a corrective move in nature, within the context of an underlying USD uptrend.

The Japanese Yen traded on the back-foot ahead of the BoJ, with the policy announcement being postponed by 60-90 minutes due to Kuroda's appearance in parliament, before the upper house budget committee. The USD/JPY was being paid at 109.16 before the risk event, expected to hit the wires between 4.30 and 5 GMT.

Both the Euro and Sterling, amid lack of own drivers in Asia, saw their rates being negatively affected due to the USD strong performance, with EUR/USD approaching 1.26 bids, while Cable saw its lowest at 1.6030.

Main headlines in Asia

GPIF may announce new basic portfolio next month - Nomura

NZIER reveals growing pessimism among NZ businesses

Australian AiG construction index at 9-yr high

N. Korea patrol boat violated western sea border, exchange of fire - Yonhap news

BoJ's Kuroda: Japan’s exports lack momentum

Fed's George: Most FOMC participants expect rate should rise in 2015

New Zealand reports wider-than-expected budget deficit

RBA keeps policy steady, neutral rhetoric

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