Aussie jumps 1.25 pc to 84.00 yen from 82.65 after the BOJ intervenes to weaken its currency, following days of speculation. First line of resistance at 84.19 yen ahead of 85.28 yen.

USD spiked 1.6 pc to 78.40 yen. With the BOJ selling yen for US dollars it tended to lift the latter across the board, nudging the Aussie down to $1.0720, from $1.0751 in New York.

Aussie set to test Wednesday low of $1.0679. A break of that may send it to $1.0650, the 19 July trough.

Japan's move followed a surprise easing by the Swiss National Bank on Wednesday aimed at restraining its soaring currency.

Aussie 0.3 pc higher at 0.8300 Swiss francs.

The move caused massive short-covering in the euro/Swiss cross, which sent the euro flying across the board. Euro jumped 1.1 pc on the Aussie to A$1.3300.

The New Zealand dollar also jumped 1.3 pc on the yen to 67.41. It was flat on the US dollar at $0.8617, after trading an offshore range of $0.8599 to $0.8677.

NZ jobs data were in line with forecasts and had little impact.

The Aussie continues to slump against its kiwi cousin, with the cross rate touching a one-year low at NZ$1.2368 before bouncing back to NZ$1.2449. The cross has fallen from about NZ$1.30 in early July.

NZ government bond yields were mixed, rising at the short end of the curve and falling for longer-dated maturities.

Australian bond futures fell a little after recent huge gains. The 3 year contract down 0.08 points to 95.90, and the 10-year 0.055 points to 95.310.

Copyright Reuters, 2011