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The Reserve Bank of Australia cut its benchmark interest rate by 25 basis points

October 3, 2012, Wednesday, 13:44 GMT | 09:44 EST | 18:14 IST | 20:44 SGT
Contributed by Forex-Metal

Asian and European trading sessions:

Euro: During the Asian session the EUR / USD pair rose to a high of $ 1.2919. However, the demand for the currency was limited as the uncertainty about signs that Spain was prepared to ask for help provided a negative impact on investors’ sentiment, thus caused sudden sales of the asset. On the European trading session the EUR / USD pair decreased to $ 1.2879 on background of growing speculations that the rating agency Moody may soon revise the rating of Spain.

U.S. Dollar: The greenback weakened against almost all of its counterparts on speculations that the recent report for labor market U.S. which came out weak will force the Federal Reserve to stimulate? the National economy and continue keeping lower rates.

British Pound: After the report showed that the UK PMI of construction declined at a slower, than it was forecasted, pace in September, the pound rose against its rivals. Indeed, the index rose to 49.5 in September by 0.5 from 49 the previous month. Moreover, the Nationwide House Prices report showed that house prices in the UK fell in September by 0.4 % in monthly term and by 1.4 % in yearly thus supported the British currency. The GBP / USD pair set the daily high at $ 1.6185 level.

Japanese Yen: Against the background of rising of the Asian stock markets on positive from previously released data of the ISM for the manufacturing sector, which increased investors’ sentiment towards risky assets the yen fell against most major currencies. The USD / JPY pair set the high of Y78.21during the European session.

Australian dollar: The main news for today was the decision of Reserve Bank of Australia to cut its benchmark interest rate by 25 basis points for the first time since June. The Australian dollar fell to its lowest level in more than three weeks after the release of the decision. The RBA has finally joined to the other central banks, which already lowered their interest rates as a measure for stimulating economic growth and fighting with slowing of global economy.

American trading session:

Japanese Yen: The expectations that the Bank of Japan would take appropriate action to weaken its currency put pressure on yen and it fell against most major currencies on American session.

New Zealand dollar: The kiwi rose against most major currencies after the publication of the report of the performance of the index of commodity prices from ANZ Commodity Prices came out positive, showing that the change in the level of prices for raw materials, valued at world prices, increased by 3.5%. However, after the release of the report the trading dynamics of the currency had changed and it fell against of all its competitors.

Gold: The December Gold futures tried to grow to $ 1,784.90 an ounce yet closed this day at $1,774.5 on the COMEX.

Oil: The Oil Prices fell by 0.03 % - to $91.65 per barrel after trading in a flat range during last sessions  in anticipation of release of statistical data of raw materials in the U.S.