9 Dec 2014
Asia Recap: Yen keeps top position this week
FXStreet (Bali) - The Japanese Yen was again the best performer in Asia, tracking gains made on Monday, as an acceleration of profit taking and risk aversion weigh, with the Australian Dollar again the main laggard as RBA rate cut calls mount.
USD/JPY saw buying interest in late US session after printing lows of 120.25, with the upward correction extending along the NY-Tokyo transition. By the open of the Japanese market, the exchange rate had been paid as high as 121.00, and while the initial slide was well contained by 120.70 support, some heavy offers came through - speculation is algo-led - as the Nikkei 225 sold-off in the afternoon, taking USD/JPY towards 120.00, approaching its closing bell down by 0.7% at 17,810.00 or thereabouts.
AUD/USD remained in free-fall mode, with today's economic data from Australia not helping to ease the pain; the exchange rate printed a new 4-1/2 year low at 0.8220, after sellers successfully protected the 0.8310/20 handle on Monday. A worsened NAB business confidence release, paired with NAB calling for 50bp of rate cuts by the RBA in 2015 - joining Westpac -, sour sentiment in equities, and concerns about Chinese growth, all weighed in the Aussie. With regards to the NZD/USD, it lagged the AUD, reaching a new low of 0.7606 before a decent bounce to regain 0.7620/25 key support.
Key headlines in Asia
New Zealand Electronic Card Retail Sales (YoY) down to 3.3% in November from previous 5.7%
New Zealand Electronic Card Retail Sales (MoM) came in at -0.1%, below expectations (0.2%) in November
Japan Money Supply M2+CD (YoY) came in at 3.6%, above expectations (3.2%) in November
United Kingdom BRC Retail Sales Monitor - All (YoY) above forecasts (0.8%) in November: Actual (0.9%)
Australia: Further erosion of business confidence - NAB
Rate Call review: RBA to cut by 50bp in 2015 - NAB
ABS supports Labour Force estimates technical review findings
Fed: Speculation on early rate hikes mount
USD/JPY saw buying interest in late US session after printing lows of 120.25, with the upward correction extending along the NY-Tokyo transition. By the open of the Japanese market, the exchange rate had been paid as high as 121.00, and while the initial slide was well contained by 120.70 support, some heavy offers came through - speculation is algo-led - as the Nikkei 225 sold-off in the afternoon, taking USD/JPY towards 120.00, approaching its closing bell down by 0.7% at 17,810.00 or thereabouts.
AUD/USD remained in free-fall mode, with today's economic data from Australia not helping to ease the pain; the exchange rate printed a new 4-1/2 year low at 0.8220, after sellers successfully protected the 0.8310/20 handle on Monday. A worsened NAB business confidence release, paired with NAB calling for 50bp of rate cuts by the RBA in 2015 - joining Westpac -, sour sentiment in equities, and concerns about Chinese growth, all weighed in the Aussie. With regards to the NZD/USD, it lagged the AUD, reaching a new low of 0.7606 before a decent bounce to regain 0.7620/25 key support.
Key headlines in Asia
New Zealand Electronic Card Retail Sales (YoY) down to 3.3% in November from previous 5.7%
New Zealand Electronic Card Retail Sales (MoM) came in at -0.1%, below expectations (0.2%) in November
Japan Money Supply M2+CD (YoY) came in at 3.6%, above expectations (3.2%) in November
United Kingdom BRC Retail Sales Monitor - All (YoY) above forecasts (0.8%) in November: Actual (0.9%)
Australia: Further erosion of business confidence - NAB
Rate Call review: RBA to cut by 50bp in 2015 - NAB
ABS supports Labour Force estimates technical review findings
Fed: Speculation on early rate hikes mount