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Forex Flash: RBA monetary policy statement eyed - Westpac

The RBA monetary policy statement, an extended version from Tuesday's RBA rte decision, will be published in around 90 minutes at 00.30 GMT.

As Sean Callow, currency strategist at Westpac, notes: "The starting point expectation is of course that the lengthy report will be an expanded version of Tue’s statement plus the usual special features."

"Given that Tue’s statement was seen as more dovish than expected, perhaps the greater risk for AUD is that the longer statement doesn’t sound quite so dovish. Changes to GDP and inflation forecasts will be noted too. The RBA was quite vague on inflation in Nov and could remain so but at the very least it should cut its 2012 GDP estimate from 3.6% to 3%" he adds.

Forex: NZD/USD finds support around 0.8300 again

NZD/USD is currently trading at 0.8334, off the 0.8300 round bid line has worked 3 times already in last month as support, coincident today also with current ascending trend line coming from June lows around the 0.7450 level. The pair is down -0.68% since previous Asia-Pacific open yesterday, following worse than expected NZ jobs report, and -1.65% for the week.
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Forex: USD/JPY stalls below the 94.00

Less than 1 hour to go for Japan current account figures to be out, USD/JPY pair is currently trading at 93.70, a +1% up for the week, and about 15 pips above previous Asia-Pacific open yesterday. Since anticipated general elections were called in Japan by mid Nov, USD/JPY has rose more than +17%, reaching highs above 94.00 not seen since mid 2010.
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