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Forex pairs in this Article » EUR/USD, USD/JPY
FXStreet (Bali) - The Australian Dollar and the Japanese Yen delivered some action in Asia, the first causing sellers to run for the exits above 0.90 early in the Tokyo open, while the Japanese Yen managed to pare its early losses in response to a -2% sell-off in the Nikkei 225.

The Australian Dollar was well supported for most of the Asia session, with buyers frustrating the selling side by tripping stops above the 0.90 handle on higher-than-expected Chinese inflation data, causing a spike in price reaching a high of 0.9025 before a mix of profit taking coupled with some mild risk-off in Asia resulted in a retreat just below 0.90.

The Yen continues to trade quite choppy, with range traders still making the most money as the 102.70-101.70 provides well established levels to trade off. The short term directional bias still points to the downside as the main risk amid failute to take out major swing highs. There was an interesting article courtesy of Nomura in which a new survey among Japanese researchers showed expectations for further BoJ QE are being pushed from April to June.

The New Zealand Dollar settled around 0.8340 with reported stops circa 0.8370 still safe. The NZD/USD is fast approaching 0.84/0.8420, proven resistance in the last 4 months of trading. The rest of G10 currencies were trapped in tight ranges ahead of the European open.

Main headlines in Asia

New Zealand December Food Price Index (MoM) increase to 1.2% vs -0.1%

RBA's Kent: Lower AUD to aid Australian economy

Early BOJ easing viewed less likely - Nomura

China's inflation picking up in January

Pricing of RBNZ rate hikes overdone - RBS
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