By FXEmpire.com - Analysis and Recommendation: ( close of Asian session )

AUD/USD was trading at 1.0808

In a surprise move Tuesday, the RBA maintained interest rates, many believe that there would be a small change, but only a few economist predicted a hold. The RBA said that it decided to keep its policy rate at 4.25% since, “with growth expected to be close to trend and inflation close to target, the board judged that the setting of monetary policy was appropriate for the moment.” Analysts had widely expected the central bank to follow the quarter-point rate cuts made at the last two meetings of 2011.

The forex markets reacted to the comments by pushing the AUD to a high not seen since early last August.

The Aussie traded as high as $1.0821 after the announcement although it later eased back slightly to $1.0809. Before the RBA decision, the dollar sat at $1.0707.

The AUD is expected to drop slightly to level off after the comments are digested and interpreted by the markets.

Economic Events: (GMT)

No economic indicators in the US or AUD today.

Scheduled Sovereign Bond Sales

Feb 08 10:10 Sweden Nominal bond auction

Feb 08 10:30 Germany Eur 4.0bn Feb 2017 Bobl

Feb 08 10:30 Swiss Bond auction

Feb 08 16:30 Italy Details BOT auction on Feb 13

Feb 08 18:00 US Auctions 10Y Notes

Feb 09 10:10 Sweden Sek 0.75bn I/L bond auction

Feb 09 15:30 Sweden Details I/L bond auction on Mar 23

Feb 09 16:00 US Announces auctions of 30Y TIPS on Feb 16

Feb 09 16:30 Italy Details BTP/CCTeu auction on Feb 14

Feb 09 18:00 Italy Auctions 30Y Bonds

Feb 10 11:00 Belgium OLO auction

[Originally Posted Here]

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