7 Apr 2014
Asia Recap: USD a tad firmer in quiet markets
FXStreet (Bali) - On the back of a disappointing US NFP last Friday, with the best barometer to judge the market's verdict being the drop in the 10-yr US Treasury yields or the unwind of USD/JPY longs, the USD traded a tad firmer in Asia.
AUD/USD struggled to break above the 0.93 round number after multiple attempts in early Tokyo, ultimately causing demand on the bottom side to be absorbed, with the exchange rate setting a session low of 0.9270 in what is still seen as a correction within a developing short term bull trend. In order to clear up the picture though, 0.93 should be clearly broken, thus exposing 0.9338 (61.8% fib retrac from the last Oct-Jan decline). On the fundamental front, ANZ Job Advertisements (Mar) came at +1.4% vs 5.1% last.
The USD/JPY consolidated near day lows, initially setting a marginal new low at 103.17 only to rebound although offers near 103.30 capped the progress. The heavy undertone in the Nikkei 225 (-1.41%), coupled with a sharp fall in the 10-yr Treasury yields and the slide in US stocks, led to an abrupt down move last Friday, now putting into question whether or nor the setback is simply corrective in nature or that a more meaningful technical top has been found. The BoJ started its 2-day monetary policy meeting earlier today, with the outcome scheduled for release on Tuesday from 3.00GMT.
The rest of currencies, including the New Zealand Dollar, were also a tad softer against the US Dollar ahead of the European session, a session in which economic indicators will be limited to Germany's industrial production and Swiss CPI data.
AUD/USD struggled to break above the 0.93 round number after multiple attempts in early Tokyo, ultimately causing demand on the bottom side to be absorbed, with the exchange rate setting a session low of 0.9270 in what is still seen as a correction within a developing short term bull trend. In order to clear up the picture though, 0.93 should be clearly broken, thus exposing 0.9338 (61.8% fib retrac from the last Oct-Jan decline). On the fundamental front, ANZ Job Advertisements (Mar) came at +1.4% vs 5.1% last.
The USD/JPY consolidated near day lows, initially setting a marginal new low at 103.17 only to rebound although offers near 103.30 capped the progress. The heavy undertone in the Nikkei 225 (-1.41%), coupled with a sharp fall in the 10-yr Treasury yields and the slide in US stocks, led to an abrupt down move last Friday, now putting into question whether or nor the setback is simply corrective in nature or that a more meaningful technical top has been found. The BoJ started its 2-day monetary policy meeting earlier today, with the outcome scheduled for release on Tuesday from 3.00GMT.
The rest of currencies, including the New Zealand Dollar, were also a tad softer against the US Dollar ahead of the European session, a session in which economic indicators will be limited to Germany's industrial production and Swiss CPI data.