Back
31 Mar 2014
Asia Recap: AUD weaker, NZ business confidence sky high
FXStreet (Bali) - Both the Australian Dollar and the Japanese Yen traded a tad weaker in Asia, in the context of a quiet session ahead of risk events on Tuesday.
AUD/USD opened at 0.9240 in the retail market platforms, and after two topside failure circa 0.9255, sellers took control to send the rate to a session low of 0.9229. Sales in AUD/JPY coupled with a higher yuan fix and the need to re-adjust overbought conditions, all led to the ongoing retracement, which occurs within the context of still a solid uptrend.
Next focus for AUD traders will be Tuesday's RBA monetary policy statement, in which concerns about the high AUD will be closely monitored. China's PMI readings are also due tomorrow in Asia, which should guarantee a session packed with action.
USD/JPY opened with an upside gap, but sellers ahead of 103.00 round number kept the rate contained in a very small range between 103.95 and 103.80. The Nikkei, which saw gains in the tune of 0.5%, underpinned the Yen crosses complex.
With regards to the Kiwi, a period of consolidation above 0.8650 was seen, following the new 2 1/2 year high of 0.8697 hit last Friday. From a fundamental view, New Zealand released a slightly lower business confidence headline, although in seasonally adjusted terms, a new 20-year high was printed, suggesting that if the momentum in the economy continues as strong as it is, the RBNZ may have to rethink more aggressive rate hikes further down the line.
The rest of G10 currencies were mostly unchanged, with the Euro ignoring headlines from the Bundesbank president playing down inflation concerns, or a German FinMin internal document noting that rates hikes by the ECB are expected next year. Lastly, US and Russia continued engaged in diplomatic talks to cool down tensions in Ukraine.
Main headlines in Asia
Bundesbank President plays down euro zone deflationary fears
German FinMin expects rate hikes by the ECB - Der Spiegel
Russia seeks diplomatic solutions to Ukrainian crisis
Moscow and Washington agree to work with the Ukraine government
New Zealand business confidence: Indicators remain very elevated
PBOC fixes yuan mid-point at 6.1521 vs the US dollar
ANZ business confidence still getting stronger - BNZ
AUD/USD opened at 0.9240 in the retail market platforms, and after two topside failure circa 0.9255, sellers took control to send the rate to a session low of 0.9229. Sales in AUD/JPY coupled with a higher yuan fix and the need to re-adjust overbought conditions, all led to the ongoing retracement, which occurs within the context of still a solid uptrend.
Next focus for AUD traders will be Tuesday's RBA monetary policy statement, in which concerns about the high AUD will be closely monitored. China's PMI readings are also due tomorrow in Asia, which should guarantee a session packed with action.
USD/JPY opened with an upside gap, but sellers ahead of 103.00 round number kept the rate contained in a very small range between 103.95 and 103.80. The Nikkei, which saw gains in the tune of 0.5%, underpinned the Yen crosses complex.
With regards to the Kiwi, a period of consolidation above 0.8650 was seen, following the new 2 1/2 year high of 0.8697 hit last Friday. From a fundamental view, New Zealand released a slightly lower business confidence headline, although in seasonally adjusted terms, a new 20-year high was printed, suggesting that if the momentum in the economy continues as strong as it is, the RBNZ may have to rethink more aggressive rate hikes further down the line.
The rest of G10 currencies were mostly unchanged, with the Euro ignoring headlines from the Bundesbank president playing down inflation concerns, or a German FinMin internal document noting that rates hikes by the ECB are expected next year. Lastly, US and Russia continued engaged in diplomatic talks to cool down tensions in Ukraine.
Main headlines in Asia
Bundesbank President plays down euro zone deflationary fears
German FinMin expects rate hikes by the ECB - Der Spiegel
Russia seeks diplomatic solutions to Ukrainian crisis
Moscow and Washington agree to work with the Ukraine government
New Zealand business confidence: Indicators remain very elevated
PBOC fixes yuan mid-point at 6.1521 vs the US dollar
ANZ business confidence still getting stronger - BNZ