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28 Jan 2014
Asia Recap: AUD makes further progress, GBP demand on the rise
FXstreet.com (Barcelona) - The Australian Dollar was the winner in Asian hours, driven by strong business confidence in Australia (2½ year high) while the Japanese Yen, weighed by a modestly higher Nikkei 225, traded weaker again.
AUD/USD traders used the NAB business confidence data (jump of 7 points from -3 to 4) to trip stop-losses above the 0.8755 resistance area, allowing a continuation of the AUD upside trajectory from Monday until faced with the first cluster of offers (just pips ahead of 0.88) in which exhaustion led to solid demand being absorbed.
The AUD/USD technical picture near term has improved significantly, and despite the underlying trend is clearly down, there has been some key layers of supply broken, now likely to act as support on dips ahead of the FOMC.
As per the USD/JPY, continued Japanese importers demand kept the rate steady, however talk of some large macro re-adjusting short Yen portfolios by selling Yen weakness together with the usual interest by exporters ahead of 102.80/103.00 strong offers, kept the upside well contained. It is worth noting that today's session high shows inability to recover the daily ichimoku cloud top, currently situated at 102.70. It is critical that buyers regain 103.00 in order to make further advances.
Meanwhile, the British Pound saw an unusual 40 pips move to the upside vs the US Dollar ahead of the UK GDP numbers later today. Stops reported above the 1.66 area went off, with the intraday rise coming to a halt near 1.6610.
Main headlines in Asia
RBNZ may hold hiking rates until March - RBS
Apple shares fall after reporting flat earnings
NZ's English: NZD too high against AUD
NZ FinMin English concerned by AUD/NZD low rate
China's troubled trust product will pay principal
Australian business conditions hit 2½ year high
PBOC to inject 150 billion yuan via 14 - day reverse repos
Amari: There is concern that FX moves may push up fuel costs
Kiwi rate hike a 50/50 bet
RBI raises repo rates unexpectedly
AUD/USD traders used the NAB business confidence data (jump of 7 points from -3 to 4) to trip stop-losses above the 0.8755 resistance area, allowing a continuation of the AUD upside trajectory from Monday until faced with the first cluster of offers (just pips ahead of 0.88) in which exhaustion led to solid demand being absorbed.
The AUD/USD technical picture near term has improved significantly, and despite the underlying trend is clearly down, there has been some key layers of supply broken, now likely to act as support on dips ahead of the FOMC.
As per the USD/JPY, continued Japanese importers demand kept the rate steady, however talk of some large macro re-adjusting short Yen portfolios by selling Yen weakness together with the usual interest by exporters ahead of 102.80/103.00 strong offers, kept the upside well contained. It is worth noting that today's session high shows inability to recover the daily ichimoku cloud top, currently situated at 102.70. It is critical that buyers regain 103.00 in order to make further advances.
Meanwhile, the British Pound saw an unusual 40 pips move to the upside vs the US Dollar ahead of the UK GDP numbers later today. Stops reported above the 1.66 area went off, with the intraday rise coming to a halt near 1.6610.
Main headlines in Asia
RBNZ may hold hiking rates until March - RBS
Apple shares fall after reporting flat earnings
NZ's English: NZD too high against AUD
NZ FinMin English concerned by AUD/NZD low rate
China's troubled trust product will pay principal
Australian business conditions hit 2½ year high
PBOC to inject 150 billion yuan via 14 - day reverse repos
Amari: There is concern that FX moves may push up fuel costs
Kiwi rate hike a 50/50 bet
RBI raises repo rates unexpectedly