The Reserve Bank of Australia (RBA) left rates on hold but "should demand conditions weaken materially, the inflation outlook would provide scope for easier monetary policy."
Further easing measures can be portrayed as slashing down rates. AUD/USD weakened by +0.60% since the beginning of today's session. PM Gillard comments that a strong aussie is hurting businesses weight on any recovery attempts during the Asian session. Intraday charts suggest 1.0602 may have contained further weakness in the pair. Immediate resistance is seen at 1.0654.
S&P credit rating agency stated traders may lower their exposure to NZD as long as private debt sector worries presist. NZD/USD posted a session low of 1.8131 but has recovered since thanks to the bullish hammer that formed on 1-hour chart.
ECB Rates, Debt-Swaps & NFP
Focus heavily remains on weekend events, The ECB rate announcement, the Greek debt-swap deal and non-farm payrolls (NFP) figures. Key figure for the European session is the revised GDP q/q at 10:00am GMT. Economists are expecting the GDP q/q to remain at -0.3% but any surprises will have their impact on EUR pairs and crosses.
AUD/JPY Observation
AUD/JPY has pulled back to its trendline as mentioned in yesterday's observation and since posted fresh low's for the week. Due to the RBA's statement further weakness cannot be ruled out.