Rates At 0523 GMT Latest Change AUD/USD 1.0532 -1.4% AUD/JPY 83.411 +2.9% 6.50% May, 2013 4.0% -0.04 4.50% Mar, 2020 4.4395% -0.03 10-Yr Spread To U.S. +222 bps -7 bps SFE Dec 3-Year Futures 96.08 +0.04 SFE Dec 10-Year Futures 95.455 +0.03 SYDNEY (Dow Jones)--A massive effort by Japan to weaken its currency rattled markets Monday, sending the Australian dollar lower against the greenback but higher against the yen ahead of a crucial central bank meeting. Although Japan's Ministry of Finance had been expected to intervene, traders suspect the effort was likely bigger than previous episodes. "We think the size could be as large as or even larger than the previous interventions," said Barclays Capital strategists. The Australian dollar tumbled to a low of US$1.0509 from an early high of US$1.0709. At 0523 GMT, the Australian dollar was at US$1.0532 from US$1.0677 late Friday. Against the yen, the currency changed hands at Y83.411 from Y81.025. The week ahead poses plenty of event risk. Locally, the Reserve Bank of Australia meets on Tuesday and is widely tipped to lower its interest rate in what would be its first adjustment in 12 months. If the RBA does cut, dealers will be closely looking for any signal that the easing is a one-off or the start of a trend. The bigger risk is that the bank holds rates steady at 4.75%, said Commonwealth Bank of Australia strategist Joseph Capurso. He said the focus will soon swing from domestic action to the G-20 leaders meeting this week, while a meeting of the European Central Bank will also be in focus. "Over time, we expect the optimism that Europe can manage its public debt-banking crisis to wane. This should put downward pressure on the Australian dollar. However, in the near term, positive announcements from the G-20 meeting this week are likely to support the Australian dollar," said Capurso. Emma Lawson, strategist at National Australia Bank, said the disruption of Qantas flights over the weekend was a slight negative for the local currency at the margin. "However, the resumption of flights and a near-term resolution to the industrial action may temper the broader negative sentiment from the weekend," she said. -By Enda Curran, Dow Jones Newswires; 61-2-8272-4687; enda.curran@dowjones.com

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