Forex: St Louis Fed Bullard inspires risk-seeking conditions

FXstreet.com (Barcelona) - A bit of risk-on sentiment is picking up through Asian hours, with comments from St Louis Fed Bullard providing markets with some excuse for more leeway, after the policy maker said Operation Twist is likely to end as a result of supply issues, and that the doors are open to commit on further QE3. Shares in Asia are still in negative but bouncing well off its lows, with the ASX200 at -0.42%, Hang Seng at -0.38% while the Nikkei 225 remains the laggard down almost 1%.

On the currencies domain, the sentiments towards the Euro makes it the best performer during Asia, with the Australian Dollar and the British Pound following suit. The worst performer so far is the Japanese Yen, with the US Dollar not far behind. EURUSD has bounced of its 38.2% fibo retrac at 1.2735, currently facing resistance at 1.2780. AUDUSD has touched new session highs at 1.0422 after it printed a 3-day low of 1.0378 on the RBA dovish minute, in which the central bank cut GDP outlook for next year.