February 14th, 2014
The dollar was unable to gain any traction in Asian trading on Friday with the familiar pattern of weakness followed by very limited correction and then fresh selling pressure.
The Nikkei index was also weak during Friday’s Tokyo session which curbed the potential for yen selling as the Japanese currency secured defensive support. The Chinese consumer inflation data was marginally higher than expected which did not have a major impact. USD/JPY stalled below 102.50 and retreated to lows near 101.50. Read the rest of this entry »
February 13th, 2014
The Australian dollar rollercoaster continued on Thursday, this time with the focus on the downside. There was AUD/USD resistance above the 0.9050 level and the latest labour-market data was weaker than expected with an employment decline of 3,700 for January as unemployment increased to 6.0%. With risk appetite also generally more fragile, AUD/USD retreated to lows below 0.8950. Read the rest of this entry »
February 12th, 2014
A stronger than expected set of Chinese trade data helped underpin risk appetite which curbed yen demand and the dollar consolidated just below the 102.50 level in Asia on Wednesday as offers continuing to block any further progress.
There was a high degree of anticipation ahead of the latest Bank of England inflation report and certainly no disappointment in terms of market volatility. The central bank sharply upgraded its GDP growth forecasts for the economy while maintaining expectations that inflation would stay in check over the next two years. Read the rest of this entry »
February 11th, 2014
The Australian dollar moved higher in Asian trading on Tuesday, bolstered to some extent by stronger than expected data with a larger than expected increase in housing finance. AUD/USD pushed sharply higher with shorts again forced to cover positions and a break above the pivotal 0.90 level helped trigger further buying for the pair.
Liquidity was very thin, especially with Tokyo markets closed for a holiday, and the AUD/USD move higher also helped trigger a sharp move higher in EUR/USD as the dollar lost ground all round. The US currency dipped to two-week lows on a trade-weighted basis as EUR/USD moved above 1.3650 for a peak just above 1.3680. Read the rest of this entry »
February 10th, 2014
The latest Japanese current account data registered a record deficit for December, maintaining longer-term expectations of yen weakness and there was some fresh speculation that the Bank of Japan would be forced to sanction additional policy easing later this year. USD/JPY pushed to a high of 102.65 in Asia on Monday before drifting weaker again as buyers were unable to secure any sustained traction. USD/JPY dipped back to test 102 support ahead the US open. Read the rest of this entry »