12 Dec 2014
Asia Recap: YUSD/JPY defends ¥119.00 ahead of JP election
FXStreet (Bali) - A session of consolidation in the G10 FX space, with the USD keeping most of its gains post US retail sales, while the Japanese Yen continues to trade slighty weaker ahead of the Japanese election this weekend.
Japanese banks were notable buyers today, tracking the positive tone in the US equities and better bid 2-year UST yield. USD/JPY tested 119.50 highs in the US, with a slow grind lower from there as Japanaese banks took money off the table ahead of the election, landing at 118.50 before a bounce back towards 118.85. Japanese PM Abe crossed the wires, via the FT, noting that a weaker Yen is providing benefits for the Japanese economy. Abe mentioned further evidence about a lower Yen resulting in production back home and helping to create new jobs. Nikkei, meanwhile, reported that the LDP looks set to win a majority in this weekend's election by claiming more than 300 parliamentary seats. Meanwhile, BOJ governor Kuroda said inflation of 2% is in sight. It is worth reminding traders of strikes rolling off in the NY cut today, 119.00 over $1.2bn, with 120.15, despite far from current price, worth about $3.7bn.
AUD/USD kept failing to make further progress to the downside, with the recovery very limited though, as offers stacked along 0.8275/80 kept absorbing bids, with the market thinning out amid the absence of news. China data, including Ind output (miss) and retail sales (beat exp), barely affected AUD prices. Talk of bids placed circa 00.8250 in the AUD/USD. As per the NZD/USD, it managed to keep the rate close to 0.78 after a brief retracement to 0.7777 low in early Tokyo. EUR/USD and GBP/USD were contained in slim ranges between 1.2390-1.2410 the former and 1.5710-30 the latter.
In other news hitting the wires during Asia, the US House passed a $1.1trln bill funding most of government through to Sept 2015, sending now the measures to Senate for debate. In Australia, Treasury Mr. Hockey said that the Australian economy has good trajectory, adding that the spending cuts announced on Monday won’t have negative effects. In New Zealand, following yesterday's surprising RBNZ outcome (less dovish-than-anticipated), today we saw Nov BusinessNZ Manufacturing Index weaker at 55.2 from 59.3, while the Dec ANZ Consumer Confidence Index came at 126.5 from 121.8, up 3.9% from -1.3% MoM.
Japanese banks were notable buyers today, tracking the positive tone in the US equities and better bid 2-year UST yield. USD/JPY tested 119.50 highs in the US, with a slow grind lower from there as Japanaese banks took money off the table ahead of the election, landing at 118.50 before a bounce back towards 118.85. Japanese PM Abe crossed the wires, via the FT, noting that a weaker Yen is providing benefits for the Japanese economy. Abe mentioned further evidence about a lower Yen resulting in production back home and helping to create new jobs. Nikkei, meanwhile, reported that the LDP looks set to win a majority in this weekend's election by claiming more than 300 parliamentary seats. Meanwhile, BOJ governor Kuroda said inflation of 2% is in sight. It is worth reminding traders of strikes rolling off in the NY cut today, 119.00 over $1.2bn, with 120.15, despite far from current price, worth about $3.7bn.
AUD/USD kept failing to make further progress to the downside, with the recovery very limited though, as offers stacked along 0.8275/80 kept absorbing bids, with the market thinning out amid the absence of news. China data, including Ind output (miss) and retail sales (beat exp), barely affected AUD prices. Talk of bids placed circa 00.8250 in the AUD/USD. As per the NZD/USD, it managed to keep the rate close to 0.78 after a brief retracement to 0.7777 low in early Tokyo. EUR/USD and GBP/USD were contained in slim ranges between 1.2390-1.2410 the former and 1.5710-30 the latter.
In other news hitting the wires during Asia, the US House passed a $1.1trln bill funding most of government through to Sept 2015, sending now the measures to Senate for debate. In Australia, Treasury Mr. Hockey said that the Australian economy has good trajectory, adding that the spending cuts announced on Monday won’t have negative effects. In New Zealand, following yesterday's surprising RBNZ outcome (less dovish-than-anticipated), today we saw Nov BusinessNZ Manufacturing Index weaker at 55.2 from 59.3, while the Dec ANZ Consumer Confidence Index came at 126.5 from 121.8, up 3.9% from -1.3% MoM.