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16 May 2014
Asia Recap: Currencies sidelined ahead of Europe
FXStreet (Bali) - Slow Friday in Asia, with the Japanese Yen consolidating recent gains and the Australian Dollar trading pretty much unchanged after a typical 20 pips range day.
USD/JPY was stuck around 101.50 after the test of 101.30 bids during the last US session, mainly pressured by the sell-off in US equities as heavy bond buying was noted, leaving a high sense of risk aversion.
Nikkei opened well in the red (-1.7%) although it failed to extend much further down, trading circa 14,000 round number ahead of the close. There is talk in the market that beneath 101.25 we may find bids from semi-officials, which may help the case for a range extension for now.
AUD /USD traded in a limited range between 0.9364 and 0.9343, only to return towards its NY closing level around 0.9350. There were reports of heavy bids lying at 0.9325 with sizeable stops underneath.
EUR/USD was side-lined marginally above the 1.37 round number. Market is talking of some offers at 1.3740 with larger found circa 1.3760’s.
Key Quotes
NZ Fin Min English: NZD a bit high, RBNZ intervention capabilities limited
Fed's Yellen makes no comments on monetary policy
China FDI - Foreign Direct Investment (YTD)(YoY) dipped from previous 5.5% to 5% in March
Counting of votes in the Indian election has just started
China bad loans rise most since 2005 as economy slows
Japan Industrial Production (MoM) came in at 0.7%, above forecasts (0.3%) in March
USD/JPY was stuck around 101.50 after the test of 101.30 bids during the last US session, mainly pressured by the sell-off in US equities as heavy bond buying was noted, leaving a high sense of risk aversion.
Nikkei opened well in the red (-1.7%) although it failed to extend much further down, trading circa 14,000 round number ahead of the close. There is talk in the market that beneath 101.25 we may find bids from semi-officials, which may help the case for a range extension for now.
AUD /USD traded in a limited range between 0.9364 and 0.9343, only to return towards its NY closing level around 0.9350. There were reports of heavy bids lying at 0.9325 with sizeable stops underneath.
EUR/USD was side-lined marginally above the 1.37 round number. Market is talking of some offers at 1.3740 with larger found circa 1.3760’s.
Key Quotes
NZ Fin Min English: NZD a bit high, RBNZ intervention capabilities limited
Fed's Yellen makes no comments on monetary policy
China FDI - Foreign Direct Investment (YTD)(YoY) dipped from previous 5.5% to 5% in March
Counting of votes in the Indian election has just started
China bad loans rise most since 2005 as economy slows
Japan Industrial Production (MoM) came in at 0.7%, above forecasts (0.3%) in March