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7 Jul 2014
Asia Recap: USD keeps NFP-inspired gains
FXStreet (Bali) - The week started with the USD keeping the firm tone seen late last week, following an upbeat US Non-Farm-Payrolls report.
AUD/USD managed to hold above the 0.9350 after an early pressure, which never found follow through to fill further bids to the downside on thin markets. EUR/USD declined some 20 odd pips towards 1.3580 session low, while still keeps the 102.00 level, although some solid supply remains above between 102.20 up to 102.50. NZD/USD is approaching the round number 0.87 after renewed selling pressure. Lastly, GBP/USD is finding it hard to break above 1.7170.
On the fundamental front, there were several headlines from ECB members, with Mr. Coeure reiterating that the Eurozone interest rates will remain low for a long period of time. Meanwhile, ECB’s Noyer played down risks of deflation, saying they seem to have been avoided despite inflation remains low. ECB’s Lautenschlaeger also crossed the wires noting that expectations are for the ECB to hold fire on a possible bond-buying program in the near future.
We also had reports suggesting that the IMF will cut global growth forecasts. In Australia, the AIG Performance of Construction index for June came at 51.8 vs 46.7, with the ANZ job advertisements for June at +4.3% m/m vs -5.7%. In New Zealand, the QV house prices indicator for June was +8.0% y/y vs +8.2% prior. In Japan, BoJ Governor Kuroda said the same old comments of Japan’s economy continuing to recover moderately as a trend.
AUD/USD managed to hold above the 0.9350 after an early pressure, which never found follow through to fill further bids to the downside on thin markets. EUR/USD declined some 20 odd pips towards 1.3580 session low, while still keeps the 102.00 level, although some solid supply remains above between 102.20 up to 102.50. NZD/USD is approaching the round number 0.87 after renewed selling pressure. Lastly, GBP/USD is finding it hard to break above 1.7170.
On the fundamental front, there were several headlines from ECB members, with Mr. Coeure reiterating that the Eurozone interest rates will remain low for a long period of time. Meanwhile, ECB’s Noyer played down risks of deflation, saying they seem to have been avoided despite inflation remains low. ECB’s Lautenschlaeger also crossed the wires noting that expectations are for the ECB to hold fire on a possible bond-buying program in the near future.
We also had reports suggesting that the IMF will cut global growth forecasts. In Australia, the AIG Performance of Construction index for June came at 51.8 vs 46.7, with the ANZ job advertisements for June at +4.3% m/m vs -5.7%. In New Zealand, the QV house prices indicator for June was +8.0% y/y vs +8.2% prior. In Japan, BoJ Governor Kuroda said the same old comments of Japan’s economy continuing to recover moderately as a trend.