Asia Recap: Kiwi keeps bleeding on Fonterra milk pay-out

By FXstreet.com | July 28, 2014 AAA

FXStreet (Bali) - The US Dollar traded firmer in a quiet Asian session, with the Kiwi ending as the worst performer accelerating losses after the Tokyo lunch break, time when Fonterra announced a worse-than-expected milk pay-out prices to farmers in NZ.

NZD/USD sold off late on the session in response to a worse-than-expected announcement by Fonterra on the milk pay-outs price to farmers for the 20014/2015 season. Lowest of the day was seen at 0.8522 following a session high of 0.8550.

USD/JPY saw prices approaching dangerously the 102.00 handle (just a few pips away), with gains in the Nikkei 225 (+0.55% at the time of writing), which continues to build some solid momentum to the upside after the bullish breakout of 15,450-500.

AUD/USD was unable to keep early gains after a fake break of US highs, with some reported negative flows in the AUD/NZD helping the case for a break of 0.94, despite 0.9390 acted as decent support so far.

In other fundamental news, we had some Japanese data, with overall household spending (YoY) (Jun)at -3.0% vs -8.0% prior, unemployment rate (Jun) worsening to 3.7% vs 3.5% last, with the retail trade (YoY) (Jun) at -0.6% vs -0.4% last. In Australia, the Housing Industry Association (HIA) New Home Sales for the month of June came at +1.2% m/m vs -4.3% in May.

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