FXStreet (Bali) - A lively Friday in Asia, with the Japanese Yen the main beneficiary after headlines crossed the wires that US President Barack Obama authorized airstrikes in Iraq.
USD/JPY came under heavy pressure following news that
Obama had authorized targeted airstrikes to protect American personnel and facilities in Iraq. The Nikkei 225 sank over 3%, with USD/JPY reaching its lowest at 101.60, which represents almost a full cent lower from the latest GPIF-rumour bounce on Thursday. The pair took another late dive after the BoJ kept its monetary policy steady, but revised down assessment in exports.
AUD/USD also succumbed to the geopolitical risks, although the Aussie had the added negative input of the RBA’s quarterly Statement on Monetary Policy, which saw growth and inflation forecasts trimmed, while on the positive side, the RBA played down the big fall on jobless rate seen Thursday.
EUR/JPY and EUR/CHF were also big movers, with new multi-month lows being achieved at 135.72 and 1.2119 respectively. EUR/USD hovered around 1.3350, while GBP/USD fell towards 1.68.
In other fundamental news, China trade balance showed an impressive$47.3bn surplus, while in Australia, home loans came at +0.2% m/m vs +0.6% expected. Lastly, in Japan, trade balance - BOP Basis (Jun) came at ¥-537.1B vs ¥-675.9B last, with bank lending at +2.2% vs +2.3% last.
Main headlines in Asia
Japan Trade Balance - BOP Basis: ¥-537.1B (June) vs ¥-675.9B
Japan Current Account n.s.a. below expectations (¥-324.3B) in June: Actual (¥-399.1B)
Japan Bank lending (YoY) dipped from previous 2.3% to 2.2% in July
Australia Investment Lending for Homes: -0.3% (June) vs -0.9%
Australia Home Loans below forecasts (0.5%) in June: Actual (0.2%)
RBA: Growth and inflation forecasts cut, plays down jobless rate
Obama authorizes targeted airstrikes in Iraq
US prepared to strike in Iraq if US personnel, facilities threaten
China Trade Balance: $47.3B (July) vs $31.6B
China Imports (YoY) declined to -1.6% in July from previous 5.5%
China Exports (YoY) increased to 14.5% in July from previous 7.2%
BoJ keeps policy steady, economy recovering moderately