MORNING BRIEFING: Reserve Bank of Australia raises rates to 4.25%.

[RTFX-Trading]

MORNING BRIEFING: Reserve Bank of Australia raises rates to 4.25%.

[B][U]What’s new:[/U][/B]
Forex: Aussie gains following rate hike; Euro drops on renewed concern over Greece.
Australia: RBA raises interest rates by 25 basis points.
Euro-zone: Greece wants to amend EU aid deal and bypass IMF.
United States: President Obama wants China's currency market-based.

[B][I][U]Today:[/U][/I][/B]
[IMG]http://www.rtfx.com/images/news/CAL060410.gif[/IMG]

[B][I][U]Overnight Rates and Indices: [/U][/I][/B]
EURUSD: 1.3497 – 1.3406.
USDCHF: 1.0684 – 1.0614.
GBPUSD: 1.5307 – 1.5168.
EURJPY: 127.89 – 127.30.
USDJPY: 94.38 – 93.86.
DowJones: 10’974 +0.43%
NASDAQ: 2’430 +1.12%
S&P 500: 1’187 +0.79%
Nikkei: 11’282 -0.50%.
Shanghai: 3’151 -0.21%,
Gold: $1’129.3
Crude Oil: $86.66

[B][U]Comments: [/U][/B]

Australia's central bank raised its interest rates by 25 basis points to a 14-month high of 4.25% on Tuesday and flagged further moves ahead as the resource-rich nation rides a tide of Asian demand. The Aussie climbed to 0.9251 against the Dollar from 0.9176 before the decision.

The Euro dropped as bearish sentiment reignited, following reports on Greece's fiscal problems, while the Sterling eased ahead of an expected election announcement in Britain. Traders said media reports that Greece wanted to amend its deal on financial aid reached at last month's EU summit was hurting the Euro. A report by Market News International cited government sources as saying conditions suggested by the IMF were tough and could cause social problems.

The Euro is down 0.55% so far against the US Dollar to a low of 1.3406 and 1.02% against the Yen, reaching 125.88. Eyes will be on the FED’s FOMC minutes to be released tonight at 20:00 CET especially since US services and jobs data has supported optimism about a US economic recovery and higher US rates.

Have a nice day.

Emman Xuereb
Trading Desk
RTFX Ltd
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