12 May 2014
Asia recap: most majors are still sleeping in a ranges; JPY is weakening
FXStreet (Moscow) - Asian hours are usually calm and slow, it’s best time to relax and ponder over eternity of the markets and reflect on where the currencies might go from here. This Monday is not an exception as most majors are sitting in narrow ranges, near the Friday closing levels. JPY is weakening on the back of the news that Japanese current account surplus shrank more than expected. While downside trend is limited due to negative Asian stock market dynamics.
AUD/USD is oscillating in a crazy 9-pips range limited by 0.9357 on the downside and 0.9366 on the downside. The pair showed little reaction to positive NAB business survey results published earlier as traders are not quit sure whether they want to drive it to the important resistance of 0.9400. Today watch for general USD sentiments for clues.
USD/JPY bulls are the prisoners of 102.00 pivot as the pair recovered to this resistance early in Asia where the upside momentum waned after a feeble attempt at current Asian high of 102.07. Japan’s current-account surplus of 116.4 billion yen ($1.1 billion) is much weaker than expected 347.7 billion yen. While on seasonly adjusted basis Japan register a deficit in the amount of 782.9 billion yen. This is the largest deficit since 1996. But the Japanese currency has a good potential to revoker from losses and drive USD/JPY lower when the markets start to speculate on Ukrainian referendum results and their geopolitical consequences.
EUR/USD is frozen to its Friday close levels. Currently it is trading at 1.3755 after opening at 1.3757. There are no interesting macroeconomic publications scheduled for today, but the markets are wanting for Vitor Constancio and Ewald Nowotny speeches today at an economics conference in Vienna. Draghi made his best to assure markets that more stimulus is coming in June, thus all new evidence to that effect will increase the downside pressure on the single currency.
NZD/USD came close the pivotal support of 0.8600 on Friday, but it seems to be too strong to be taken out right away. The pair managed to recover to current levels of 0.8628, while the Asian high is set at 0.8634, but the upside momentum is weak.
Key macroeconomic events
Australia National Australia Bank's Business grew in April
Japan Trade Balance sumped
Xi says China must adapt to ‘new normal’ of slower growth
AUD/USD is oscillating in a crazy 9-pips range limited by 0.9357 on the downside and 0.9366 on the downside. The pair showed little reaction to positive NAB business survey results published earlier as traders are not quit sure whether they want to drive it to the important resistance of 0.9400. Today watch for general USD sentiments for clues.
USD/JPY bulls are the prisoners of 102.00 pivot as the pair recovered to this resistance early in Asia where the upside momentum waned after a feeble attempt at current Asian high of 102.07. Japan’s current-account surplus of 116.4 billion yen ($1.1 billion) is much weaker than expected 347.7 billion yen. While on seasonly adjusted basis Japan register a deficit in the amount of 782.9 billion yen. This is the largest deficit since 1996. But the Japanese currency has a good potential to revoker from losses and drive USD/JPY lower when the markets start to speculate on Ukrainian referendum results and their geopolitical consequences.
EUR/USD is frozen to its Friday close levels. Currently it is trading at 1.3755 after opening at 1.3757. There are no interesting macroeconomic publications scheduled for today, but the markets are wanting for Vitor Constancio and Ewald Nowotny speeches today at an economics conference in Vienna. Draghi made his best to assure markets that more stimulus is coming in June, thus all new evidence to that effect will increase the downside pressure on the single currency.
NZD/USD came close the pivotal support of 0.8600 on Friday, but it seems to be too strong to be taken out right away. The pair managed to recover to current levels of 0.8628, while the Asian high is set at 0.8634, but the upside momentum is weak.
Key macroeconomic events
Australia National Australia Bank's Business grew in April
Japan Trade Balance sumped
Xi says China must adapt to ‘new normal’ of slower growth