Filed Under:
Forex pairs in this Article » EUR/USD, GBP/USD, USD/JPY (Bali) - A session of consolidation in Asia, with the Aussie not letting sellers gain further ground, while the Japanese Yen pared some of its Thursday's gains on a late Nikkei 225 rebound.

On the USD/JPY front, importers were notable buyers on dips at the Tokyo fix around the 104.20 area, which coupled with a post lunch recovery in the Nikkei 225 - +0.13% from -0.5% - helped lift the pair off the floor, technically well cushioned by its daily tenkan sen.

AUD/USD initiated a light correction on Thursday, yet several attempts to break through 0.8830 were successfully challenged by leveraged accounts, ultimately absorbing bids as the Shangai dipped over 1% - later partially recovered - , resulting in a slide back to retest 0.88, before buyers re-emerged to stabilize the price in a 20/30 pips range.

NZD/USD was the main laggard in Asia, giving back some of its large weekly gains as traders squared up positions and take profits off AUD/NZD. Despite the decline, the market remains core-long the Kiwi in expectations of imminent rate hikes (Q1) by the RBNZ.

Euro, Pound, Swissy and the Loonie were all quiet in Asia, with the market sidelining capital until next Monday's key Chinese Q4 GDP.

On the fundamental domain, a vacant calendar offered little news. In Japan, consumer confidence index stood at 41.3 vs 42.5 last as the sales tax hike looms, while further outflows into foreign bonds was confirmed by MoF data. Japanese EconMin also crossed the wires saying CAPEX in the country is expected to expand significantly. In China, the Beige Book saw China’s economic prospects strengthened in the fourth quarter, despite "the credit landscape remains largely bleak", the report noted.

Main headlines in Asia

Congress gives final approval to $1.1 trillion spending bill

Japan: Foreign bond investment (January 10): ¥-740.6B vs ¥-441.2B

Japan's Government raises economic assessment for first time since September

Amari:Expects considerable expansion in capital spending

Japan December Consumer Confidence Index declines to 41.3 vs 42.5
comments powered by Disqus
Trading Center