$AUD bought back after RBA

$AUD/USD was the strongest performer in Asia, following a neutral RBA monetary policy announcement, keeping its benchmark interest rate at record low of 2.5%, while at last, some light profit-taking was seen in Yen crosses.

$AUD/USD was initially taken lower towards 0.8645/50 support after an algos-led 'mini' crash following softer employment revisions by the ABS, which came combined with retail sales for Sept beating estimates, while trade balance deficit was higher-than-expected. After that, a vigorous recovery took place ahead of the RBA, which offered no material changes on its statement, seen as 'good enough' to buy back AUDs.

$USD/JPY finally saw traders take some profit off the table, assisted by the Nikkei, which prompted some Yen strength after giving back +5% gains from the open, with the benchmark index sliding along Tokyo hours, approaching the close up by 'just' 3.4%. The pair found some bids circa 113.50, stabilizing prices. $NZD/USD found some buying interest although selling on strength at 0.7750/55 continues to be preferred. $EUR/USD was another mover, with position adjustments taking the rate to a high of 1.2530 after some weak stops were removed above 1.2510/15. $GBP/USD traded higher but limited by 1.60.

Fundamentally, Australian retail sales s.a. (MoM) registered at 1.2% above expectations (0.4%) in September. The Sept employment was revised to -23.7k, from -29.7k, while Australian Sept unemployment rate was revised to 6.2 pct vs 6.1 pct. Australian trade balance came below forecasts (-1950M) in September, with actual (-2261M). Imports were up to 6% in September from previous -3%, while exports increased to 1% in September from previous -2%. In New Zealand, the ANZ commodity price stood at -0.8% (October) vs -1.3% Sept. In Japan, Nomura/ JMMA Manufacturing Purchasing Manager Index came at 52.4 in Oct vs 52.8 prior.