11 Apr 2014
Asia Recap: AUD heavy as taste for risk wanes
FXStreet (Bali) - By Asian standards, it was a session with its fair amount of volatility, keeping traders entertained, especially in the first few hours of Tokyo, with the Aussie giving back some of its monstrous gains, while Yen saw early bids being unwound despite a heavy Nikkei.
AUD/USD opened at 0.9410 after coming off a new 5-month high last Thursday at 0.9460. After some back and forth, early Tokyo sold AUD/JPY quite aggressively, helping drag the AUD/USD though 0.94 support, posting the first lower high on the day since April 3rd. After the impulsive slide, the pair managed to stabilize around 0.9380.
USD/JPY was pressured in early trading, testing bids sub 101.30 but these proved too strong to be absorbed, leading to a mid morning short covering back up towards 101.65. The Nikkei traded down around 2%, slightly off its day lows, which saw the benchmark index trade -2.75% at one point. Fundamentally, the BoJ minutes was published, offering no surprises.
NZD/USD traded in a weak tone, sliding through 0.8635 support to print a session low of 0.8625 before a slight bounce. Earlier in Asia, New Zealand published the REINZ House price index (MoM) coming at 3.4% in March vs 2.1% last, while the food price index (MoM) stood at -0.3% vs -1.0% last.
The rest of G10 currencies were quiet ahead of Europe, where the attention will be shifted to European CPIs in order to gauge the next possible actions by the European Central Bank, as deflation remains a threat.
Main headlines in Asia
Draghi: ECB to monitor exchange rate developments closely
BoJ minutes: Inflation and economy progressing as projected
China stimulus should be very cautious - PBOC Yi Gang
New Zealand Food Price Index (MoM): -0.3% (March) vs -1%
China's Q1 current account may slip into deficit - Nomura
Obama and Merkel urge Russia to move troops back from border
China to relax restrictions on overseas investments
Chinese inflation in line with estimates
AUD/USD opened at 0.9410 after coming off a new 5-month high last Thursday at 0.9460. After some back and forth, early Tokyo sold AUD/JPY quite aggressively, helping drag the AUD/USD though 0.94 support, posting the first lower high on the day since April 3rd. After the impulsive slide, the pair managed to stabilize around 0.9380.
USD/JPY was pressured in early trading, testing bids sub 101.30 but these proved too strong to be absorbed, leading to a mid morning short covering back up towards 101.65. The Nikkei traded down around 2%, slightly off its day lows, which saw the benchmark index trade -2.75% at one point. Fundamentally, the BoJ minutes was published, offering no surprises.
NZD/USD traded in a weak tone, sliding through 0.8635 support to print a session low of 0.8625 before a slight bounce. Earlier in Asia, New Zealand published the REINZ House price index (MoM) coming at 3.4% in March vs 2.1% last, while the food price index (MoM) stood at -0.3% vs -1.0% last.
The rest of G10 currencies were quiet ahead of Europe, where the attention will be shifted to European CPIs in order to gauge the next possible actions by the European Central Bank, as deflation remains a threat.
Main headlines in Asia
Draghi: ECB to monitor exchange rate developments closely
BoJ minutes: Inflation and economy progressing as projected
China stimulus should be very cautious - PBOC Yi Gang
New Zealand Food Price Index (MoM): -0.3% (March) vs -1%
China's Q1 current account may slip into deficit - Nomura
Obama and Merkel urge Russia to move troops back from border
China to relax restrictions on overseas investments
Chinese inflation in line with estimates