Currency Update: As expected, the RBA left its policy rate unchanged at 2.50% yesterday

Currency Update: As expected, the RBA left its policy rate unchanged at 2.50% yesterday. Following the meeting, monetary policy was assessed to be appropriately configured to foster sustainable growth in demand and inflation. Furthermore, this neutral bias statement was qualified by the most prudent course is likely to be a period of stability in interest rates. The AUD was also no longer described as uncomfortably high and the Bank was more constructive on the domestic economic outlook. In Europe, there were small losses in most equity markets despite better news in the banking sector (led by UBS) and the bounce back in US shares. Not much in terms of economic data, with only the PPI released which came in at 0.2%mom/-0.8%yoy in December as expected. The EUR has been little changed overnight.