Asia Recap: RBA Stevens shows no concern over AUD level

FXStreet (Bali) - The Australian Dollar was again the best performing currency in Asia, fueled by the reassurance that the RBA Governor Stevens has definitely toned down the rhetoric against the high AUD level, perhaps with the goal in mind to prevent importing higher inflation from a cheaper currency.

The only real mover in Asia was the Australian Dollar, initially struggling to get out of second gear, yet as soon as headlines from RBA Governor Stevens crossed the wires, the rate exploded over 40/45 pips higher, now en-route to 0.9205 (50% fib retrac Nov-Jan) and 'pain level' for those perma shorts the currency. Stevens continued to show lack of concern over the recent AUD appreciation, which coupled with the bullish technical, it was perceived as a risk being removed before the buying resumed.

The Japanese Yen moves were uninspiring again, keeping fluctuations contained between 102.20 and 102.40. The Nikkei 225, up a moderate 0.3%, failed to encourage an increase in participation. Meanwhile, the rest of currencies, except the Kiwi - rose up to 0.8595 on AUD strength -, were confined in small ranges ahead of Europe.

Main headlines in Asia

Fed's Plosser favours rules-based policy

Aide to Japan PM says BoJ easing in May possible

RBA Financial Stability Review: Deleveraging has run its course

Chinese banks turn more selective to take on risk

RBA Stevens’ speech: risk of serious inflation unlikely, housing a concern

AUD buying frenzy as RBA omits to talk down AUD, positive mining transition

Risk of RBA jawboning AUD removed?

RBA’s Stevens: AUD direction from here depends on view of fundamentals

RBA Stevens: Reluctant to draw lines of sand in foreign exchange markets