Asia Recap: NZD firmer, JPY main loser

By | Updated August 13, 2014 AAA

FXStreet (Bali) - The Kiwi ends Asia as the main winner, despite the fact that gains were far from impressive considering the upbeat NZ retail sales release, which under a different set of circumstances (sentiment) would have probably prompted up the currency quite a bit further.

NZD/USD was benefited by a solid NZ retail sales report, which saw retail sales ex autos (core) for Q2 at +1.2% vs +0.8% last, with retail sales Q2 stood at +1% vs +0.7% last, both reading beating estimates of 0.7-0.8% range. The pair initially rose towards 0.8485-90 area, but sellers stepped in, forcing price to retreat near its NY close, currently at 0.8460-65.

AUD/USD retraced down towards 0.9285-90 seeking for liquidity, which was found ahead of the key technical area (flip zone) at 0.9280-90, with the dip buying noted allowing the price to retest 0.93 after a 0.9319 high on Wednesday following soft US retail sales, which served as the excuse to stop out weak shorts ahead of a descending trendline just overhead circa 0.9325, key for today.

USD/JPY kept strengthening for a 4th consecutive day, taking the rate very close to test 102.70-80 supply, which should protect the upside ahead of further selling interest reported ahead of 103.00 round number. The nikkei 225 was up over +0.6% ahead of the close, supporting Yen crosses.

To sum up, NZD retains Wed's bid tone thanks to local data, although still feels heavy until further technical breakouts seen; The USD was well bid across the board too, helped by a sight pick up in 10 year US yields, up 1.5bp TO 2.4350; On the flip side, the Yen was the main laggard.

You May Also Like

Related Forex Analysis
  1. Forex News

    AUD selling persists, ECB's accounts in focus

  2. Forex News

    Trading Video: Ready Trend and Range Opportunities for Risk, Dollar

  3. Forex News

    USD/JPY Technical Analysis: Buyers Lose Hold of 120.00

  4. Forex News

    EUR/USD Technical Analysis: Decline Pauses Above 1.07

  5. Forex News

    What’s Next: USD falls after data, focus on NFP

Trading Center