Forex Updates- AUD, Euro retreats from recent highs against JPY, USD

On Tuesday, the AUD, the Euro and GBP retreat from highs against the JPY and the USD as investors taken profits from their gains, helped by caution ahead of US banks stress test outcome.

The AUD floated below its seven-month high against the greenback set in early trade as the market looked for a rate decision from the Reserve Bank of Australia, which was  predict to keep its cash rate at 3.0%.

According to Forex updates that the 10 US banks being stress tested were expected to require more capital injected a note of caution into a market made less liquid than standard by a three-day holiday in Tokyo.

US regulators have deemed about 10 to 19 banks will require more capital, according to a source known with the talks. Tests result was expected on Thursday.

The AUD edged down 0.1% on the day to $0.7404 after striking a seven-month high of $0.7427 in early trade and increasing more than 1% on Monday.

It drops 0.2% to 73.08 Yen, down from Monday’s seven-month high of 73.57 Yen.