Session recap: Quiet Asian session despite plenty of Aussie headlines

FXstreet.com (Barcelona) - The Asian session has seen a dearth of meaningful moves in the major currency pairs – almost as if global traders are now on “Fed Vigil” ahead of the Tuesday / Wednesday FOMC meeting in the U.S.

Session Data Summary and Reactions

• Australia’s Conference Board Leading Indicators showed nice growth m/m – AUD drifter lower for a while until more Aussie data was released.
• Australia’s New Motor Vehicle Sales data was much stronger than expected – AUD caught a bid following the release, but that was more likely due to the RBA’s minutes than the vehicle sales data.
• The Reserve Bank of Australia’s Monetary Policy Meeting Minutes revealed that the Board obviously decided to hold rates steady but that they were leaving the door open to future cuts if necessary. The AUD/USD oscillated up and down for a while – not making much progress in the process.

Main headlines in Asia:

Do not overlook risk of a rating downgrade in Australia

New Zealand upgrades forecast for budget surpluses

RBA minutes: not closing off possibility of easing further

Australian Treasurer crossing the wires on MYEFO

Australia GDP forecast, deficits are credit negative - Moody's