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20 Oct 2014
Asia recap: most majors are still sleeping in a ranges; JPY is weakening
FXStreet (Moscow) - Monday hours are usually calm and slow, it’s best time to reflect on where the currencies might go from here during the week. Most majors are sitting in ranges, near the Friday closing levels with the notable exception of USD/JPY that has gapped higher at the opening and now it is weakening on the back of the news that Japanese Government Pension Investment Fund plans to increase its portfolio allocations in domestic equities and overseas assets. The news supported the Japanese stock markets that have posted their largest one day gains in a year by the middle of Tokyo session. The Nikkei 225 closed for lunch up 3.34% at 15,018.55, while the Topix is up 3.46% 1,217.91. The Governor of the Bank of Japan Haruhiko Kuroda confirmed today that the central bank would keep up with monetary easing until inflation is firmly anchored at 2%. His comments added pressure on JPY across the board.
A Chinese government official mentioned the central bank is planning to increase stimulus by injecting funds into some lenders. Aussie bulls were happy as Australia will benefit from stimulus in China, one of the biggest Australia’s trading partners.
FXStreet (Moscow) - EUR/USD started the day at 1/2760 and retreated towards current Asian low at 1.2737 during early hours, though the downside was short-lived and the pair recovered towards 1.2769 before settling down 1.2760, nearly unchanged on the day. The trading activity is slow, EUR is waiting for European players to join the game.
FXStreet (Moscow) - USD/JPY opened the day at 107.11 after having finished NY session at 106.91. The pair touched 107.00 support during early hours and has been on the upside ever since. Currently, USD/JPY is trading at 107.36 with a clear bullish bias.
AUD/USD benefited form the Chinese news. The pair began the Asian session at 0.8757 and climbed towards Asian high at 0.8786 after an initial drop to 0.8747. Aussie failed to go through a layer of offers spotted on approach to 0.8790/00 and retreated to 0.8770.
NZD/USD is positively biased in Asia. The pair climbed from 0.7921 at the opening towards its current level of 0.7948 after having touched the low at 0.7914 and high at 0.7961. Kiwi is moving in unison with Aussie on the back of China stimulus news, though the bullish momentum is fading away.
A Chinese government official mentioned the central bank is planning to increase stimulus by injecting funds into some lenders. Aussie bulls were happy as Australia will benefit from stimulus in China, one of the biggest Australia’s trading partners.
FXStreet (Moscow) - EUR/USD started the day at 1/2760 and retreated towards current Asian low at 1.2737 during early hours, though the downside was short-lived and the pair recovered towards 1.2769 before settling down 1.2760, nearly unchanged on the day. The trading activity is slow, EUR is waiting for European players to join the game.
FXStreet (Moscow) - USD/JPY opened the day at 107.11 after having finished NY session at 106.91. The pair touched 107.00 support during early hours and has been on the upside ever since. Currently, USD/JPY is trading at 107.36 with a clear bullish bias.
AUD/USD benefited form the Chinese news. The pair began the Asian session at 0.8757 and climbed towards Asian high at 0.8786 after an initial drop to 0.8747. Aussie failed to go through a layer of offers spotted on approach to 0.8790/00 and retreated to 0.8770.
NZD/USD is positively biased in Asia. The pair climbed from 0.7921 at the opening towards its current level of 0.7948 after having touched the low at 0.7914 and high at 0.7961. Kiwi is moving in unison with Aussie on the back of China stimulus news, though the bullish momentum is fading away.