AUD descended from its four-month highs after the central bank indicated the aussie’s strength was a risk to the country’s economic recovery this year. The Reserve Bank of Australia held rates steady, as expected. The central bank also said a sharp fall in the currency throughout 2013 was assisting the economy, although the recent rebound had reduced the benefit for exporters.
The EUR rose after better-than-expected macro data added evidence to the region’s gradual recovery and dampened chances of policy easing. Germany’s unemployment fell by 12,000 in March, beating estimates of a 10,000 decline. France PMI returned to growth in February, hitting its highest since June 2011.
The GBP slipped against most of the major currencies after factory output dropped to 55.3 in March, the lowest level since July 2013. Hopes for an earlier rate hike were also dampened after Bank of England officials commented that an abrupt interest rate hike will pose a risk to financial stability.
