The yen continued its rise on Tuesday, hitting a 3-week high versus the US dollar as stop loss orders were triggered with forex investors taking their profits on short yen positions. Meanwhile the euro took a breather on Tuesday, after selling off on Monday following downbeat euro zone manufacturing and employment data.
The dollar was under pressure across the board, as a strong ISM print from the United States and a surging Chinese non-manufacturing PMI number lifted risk appetite and dampened demand for safe-haven assets. recovered more than 0.20 percent to 1.3355 after hitting a low of 1.3278 after PMI data from Europe pointed at a mild recession in the common currency area.
edged lower on Tuesday, after dipping more than 110 points on Monday. The pair hit a 3-week low of 81.55, after closing below its 20-day moving average and the 23.6 percent fibonacci retracement level of the February low to March high move, by 82.73 and 82.25 respectively. It gathered pace after stop-losses reported in the 81.90 - 80 areas were triggered.
Early on Tuesday, the Reserve Bank of Australia announced it was keeping its rates unchanged at 4.25 percent. Initially the Australian dollar was pushed higher to a session high of 1.0466 versus the greenback but plummeted lower after a policy statement sounded more dovish than expected. plunged to 1.0390 as forex investors believe the RBA may cut rates in May if Q1 inflation reading falls lower. The RBA said growth was deemed to be "somewhat below trend" and "somewhat lower than earlier estimated" which represents a significant shift from the "close to trend" language used previously.