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2 Apr 2014
Asia Recap: A cheaper Yen main theme
FXStreet (Bali) - Weakness in the Yen and New Zealand Dollar were the dominant themes in an otherwise subdued Asian session.
The USD/JPY, on the back of a breakout of the daily cloud top, saw an extension higher through 103.65/70 (61.8% fib retrac Dec - March decline), which led longs to make further progress until 103.93. Strength in the Nikkei 225, up 1.72% at the time of writing, was the main contributor to a cheaper Yen. It is worth noting that today's rally in the Japanese index represents a re-take of the psychological 15,000, with the next big challenge to the upside the top of the daily cloud.
As per the AUD/USD, a period of consolidation between 0.93 and 0.9215/20 has been initiated, with a break of these edges necessary to define the next short term directional bias. Today's price action covered a 0.9250-0.9222 range, with early weakness post disappointing building approvals out of Australia being later reversed back to 0.9235/40 amid think liquidity. The next risk event for the pair will be the ADP jobs number in the US later today and Aus retail sales on Thursday.
NZD/USD saw a key ascending trendline off Feb 4 broken, leading to an extension towards a new 4-day low of 0.8585 before a mild recovery back towards 0.86. The sharp fall in dairy product prices this week weighed on the NZD sentiment, with market sources reporting activity by perma longs to take profits off the table after the formidable 6+ cents rally since early Feb.
The rest of G10 currencies were barely moved, keeping tight ranges ahead of Europe, with the EZ GDP Q4 being the standout ris event to keep an eye for for those trading the EUR.
Main headlines in Asia
New Zealand ANZ Commodity Price dipped from previous 0.9% to -0.1% in March
Australian building approvals fall below expectations
NZD/USD technicals: Break of key trendline confirmed
The USD/JPY, on the back of a breakout of the daily cloud top, saw an extension higher through 103.65/70 (61.8% fib retrac Dec - March decline), which led longs to make further progress until 103.93. Strength in the Nikkei 225, up 1.72% at the time of writing, was the main contributor to a cheaper Yen. It is worth noting that today's rally in the Japanese index represents a re-take of the psychological 15,000, with the next big challenge to the upside the top of the daily cloud.
As per the AUD/USD, a period of consolidation between 0.93 and 0.9215/20 has been initiated, with a break of these edges necessary to define the next short term directional bias. Today's price action covered a 0.9250-0.9222 range, with early weakness post disappointing building approvals out of Australia being later reversed back to 0.9235/40 amid think liquidity. The next risk event for the pair will be the ADP jobs number in the US later today and Aus retail sales on Thursday.
NZD/USD saw a key ascending trendline off Feb 4 broken, leading to an extension towards a new 4-day low of 0.8585 before a mild recovery back towards 0.86. The sharp fall in dairy product prices this week weighed on the NZD sentiment, with market sources reporting activity by perma longs to take profits off the table after the formidable 6+ cents rally since early Feb.
The rest of G10 currencies were barely moved, keeping tight ranges ahead of Europe, with the EZ GDP Q4 being the standout ris event to keep an eye for for those trading the EUR.
Main headlines in Asia
New Zealand ANZ Commodity Price dipped from previous 0.9% to -0.1% in March
Australian building approvals fall below expectations
NZD/USD technicals: Break of key trendline confirmed