Euro steady against dollar

The euro remained largely steady versus the dollar today as the market gets ready for China’s trade data and the bank of Japan’s announcement following its two-day monetary policy meeting, reports Reuters.

The euro held on to $1.3111, having climbed from its four-week low of $1.30330 on Monday but stopped just short of resistance at around $1.3130. Overall, risk assets remained reasonably resilient as many investors seem to be of the opinion that soft payrolls data from the US will bring forward another round of quantitative easing.

Earlier on Tuesday, an eagerly awaited speech by Bern Bernanke, the chairman of the Federal Reserve, proved to be an anti-climax as he did not talk about monetary policy. However, markets will be looking towards the raft of other speeches which the Fed will make this week for a hint of any further easing, which could see the US dollar drop and, therefore, benefit risk currencies.

Last week, the Australian dollar fell to a three-month low as a result of soft local data, concerns about a hard landing occurring in China and anticipations for a reduction in rates in May. Trade figures from China are set to be a flash point as there are expectations of a dramatic slowdown annual export and import growth in March..