Session Recap: Aussie extends recovery post RBA

The Australian Dollar was the main mover along the Asian session, after the RBA held rates unchanged at 3%, also retaining a dovish tone on its monetary policy statement, yet there seems to be growing sentiment in the market that the central bank has no urgency on further easing for the time being. AUD/USD broke through important 1.0225 resistance, threatening a descending trendline around 1.0240 now. The Aussie was also supported by strong retail sales data.

The other late mover in Asia was the Japanese Yen, with some short Yen squeeze taking place after a Japanese opposition official from the DPJ stated he was opposed to support Mr. Iwata as the BoJ deputy nominee. The market, amid uncertainty over the backbone of the deputy arm under Kuroda's leadership umbrella, reacted buying some Yens as a response. The buying was moderate though. Euro, Pound await European market bids to unravel its motionless moves.

Main headlines in Asia (in chronological order)

- AUD/USD takes control of 1.0180 ahead of RBA

- Short NZD/USD stopped out at break even - Westpac

- Australian retail sales Jan stronger-than-expected

- China February HSBC Services PMI 52.1 (vs. 53.5 prior)

- Japan opposition official: we cannot support Iwata as BoJ deputy

- RBA holds rates: retains dovish tone, but no urgency to cut

- AUD/USD higher post-RBA on hold