30 Jun 2014
Asia Recap: Yen leads, Kiwi pressured
FXStreet (Bali) - The Yen ends the session as the best performing currency, while on the flip side, the Kiwi was the main laggard.
Looking at the quotes ahead of Europe, EUR/USD remains in a fairly strong bullish tone, with the perception being that the market will continue to adhere to buy dip strategies, mainly on US Dollar weakness, ahead of the ECB policy meeting Thursday. Inflation data out of the Eurozone at 9GMT will be a key event to watch today.
GBP/USD traded well above the 1.70, presently 1.7030, although the bullish momentum has now shifted to a range-bound market profile until a resolution in either direction is seen. For now, we are stuck in a 1.70-1.7050 range that needs to be resolved.
AUD/USD saw limited moves above the 0.94 handle, leaving the Kiwi as the main protagonist of the session, sliding towards 0.8740 from 0.8785, with a downbeat ANZ business confidence reading to blame for the offered tone in the currency.
Lastly, USD/JPY tried unsuccessfully to breach the 101.30 support area, recording a low of 101.26 before consolidating along the mentioned level. The Nikkei traded almost flat at 0.10%.
On the fundamental font, there were plenty of headlines to chew on, starting by BOE officials comments.
Governor Carney said that the value of the GBP should settle over time, while BOE’s Bean said "market expectations of a rise in UK interest rates at the turn of the year are “reasonable."
In Europe, ECB’s Mersch played down the risks of deflation in Europe, saying "no acute risk of deflation seen."
In Japan, showed his commitment on the third arrow by writing an opinion piece on the Financial Times, saying that the will defeat the economic demons.
Meanwhile, BIS warned of a worrying disconnect between markets’ buoyancy and underlying economic developments.
In the US, Fed's Bullard suggested to not pay much attention to the awful US GDP in Q1 and that market should start looking forward.
In New Zealand, the double whammy hitting the Kiwi came on May building permits, -4.6% m/m vs -2/6% exp, with New Zealand ANZ business confidence for June also disappointing at 42.8 vs 53.5 last.
In Australia, the TDS/Melbourne Institute inflation gauge for June came unchanged vs +0.3% exp, while HIA new home sales for May were -4.3% m/m vs +2.9%; we also had private sector credit for May, coming at +0.4% m/m, which was in line with estimates.
Looking at the quotes ahead of Europe, EUR/USD remains in a fairly strong bullish tone, with the perception being that the market will continue to adhere to buy dip strategies, mainly on US Dollar weakness, ahead of the ECB policy meeting Thursday. Inflation data out of the Eurozone at 9GMT will be a key event to watch today.
GBP/USD traded well above the 1.70, presently 1.7030, although the bullish momentum has now shifted to a range-bound market profile until a resolution in either direction is seen. For now, we are stuck in a 1.70-1.7050 range that needs to be resolved.
AUD/USD saw limited moves above the 0.94 handle, leaving the Kiwi as the main protagonist of the session, sliding towards 0.8740 from 0.8785, with a downbeat ANZ business confidence reading to blame for the offered tone in the currency.
Lastly, USD/JPY tried unsuccessfully to breach the 101.30 support area, recording a low of 101.26 before consolidating along the mentioned level. The Nikkei traded almost flat at 0.10%.
On the fundamental font, there were plenty of headlines to chew on, starting by BOE officials comments.
Governor Carney said that the value of the GBP should settle over time, while BOE’s Bean said "market expectations of a rise in UK interest rates at the turn of the year are “reasonable."
In Europe, ECB’s Mersch played down the risks of deflation in Europe, saying "no acute risk of deflation seen."
In Japan, showed his commitment on the third arrow by writing an opinion piece on the Financial Times, saying that the will defeat the economic demons.
Meanwhile, BIS warned of a worrying disconnect between markets’ buoyancy and underlying economic developments.
In the US, Fed's Bullard suggested to not pay much attention to the awful US GDP in Q1 and that market should start looking forward.
In New Zealand, the double whammy hitting the Kiwi came on May building permits, -4.6% m/m vs -2/6% exp, with New Zealand ANZ business confidence for June also disappointing at 42.8 vs 53.5 last.
In Australia, the TDS/Melbourne Institute inflation gauge for June came unchanged vs +0.3% exp, while HIA new home sales for May were -4.3% m/m vs +2.9%; we also had private sector credit for May, coming at +0.4% m/m, which was in line with estimates.