FX Update: The Australian dollar ebbed to an 11-day low
FX Update: The Australian dollar ebbed to an 11-day low versus the U.S. dollar, at 0.6833. Several factors weighed on the antipodean currency. First, the RBA minutes from the September policy meeting showed that the central bank remains disposed to further easing, and second, Australian consumer sentiment fell to a two-year low. At the same time, China's PBoC also took its foot off the stimulus pedal a little, refraining from rolling over nearly CNY 300 B in money market instruments today. Elsewhere, the dollar has been in a narrow-ranged consolidation after rallying yesterday on safe haven demand as markets reacted to weekend news of the attacks on Saudi oil facilities. EUR-USD has settled near the 1.1000 level after yesterday dropping from levels above 1.1050. Cable has steadied near the 1.2420 mark after yesterday rotating from levels above 1.2500. Both the Canadian dollar and Norwegian crown have corrected a little after both rallied quite strongly as a consequence of the sharp spike in oil prices yesterday. Crude prices have remained elevated, although the U.S. and Japan, among other nations, have pledged to release strategic crude supplies if needed to help stabilize prices.