16 Feb 2015
Asia Recap: USD continues to trade on a soft tone
FXStreet (Bali) - The US Dollar was broadly weaker in Asia, with the Pound, Yen and Kiwi the main beneficiaries.
AUD/USD strengthened towards 0.7792 highs - key resistance - with stops above 0.78 coming into focus ahead of Europe. NZD/USD was also bid throughout the day, after an upbeat retail sales print in NZ, with the rate breaking 0.75.
USD/JPY opened with a downside gap, initially tripping stop below 118.30 to make a new low of 118.11 during interbank trade, with the rate later bouncing on lower-than-expected Japanese Q4 GDP expansion, but capped by 118.80 before a new retreat to 118.35 low. Japanese Q4 GDP came at 2.2% on a yearly basis, while rising +0.6% in Q4, short of +0.9% exp, with a previous Q3 read revised down to -0.6% from -0.5%.
GBP/USD broke 1.5420 resistance and is now en-route to 1.5450, after Bank of England Monetary Policy Committee member Martin Weale said Sunday he expects interest rates in the UK to rise quicker than the markets currently expects.
EUR traders also had some encouraging news, allowing the EUR/USD to pop above the 1.14 handle, after Greek Finance Minister Yanis Varoufakis said on Saturday, via Reuters, that an agreement with the Eurogroup on a new Greek funding deal would be reach, "even at the last minute", Varoufakis said, adding that "our strong stance, based on logic, will lead to an agreement, even at the 11th hour."
Key headlines in Asia
Japan's Econonic Minister Amari: Favourable situation towards beating deflation
Japan's Q4 GDP expands after two quarters of contraction
ECB's Draghi: 'Grexit' makes no sense
Greek FinMin: Optimistic on deal with EU, even at last minute
BoE's Weale expects rates to rise quicker than market expects
CFTC report: Specs reluctant to add or cut positions - TDS
AUD/USD strengthened towards 0.7792 highs - key resistance - with stops above 0.78 coming into focus ahead of Europe. NZD/USD was also bid throughout the day, after an upbeat retail sales print in NZ, with the rate breaking 0.75.
USD/JPY opened with a downside gap, initially tripping stop below 118.30 to make a new low of 118.11 during interbank trade, with the rate later bouncing on lower-than-expected Japanese Q4 GDP expansion, but capped by 118.80 before a new retreat to 118.35 low. Japanese Q4 GDP came at 2.2% on a yearly basis, while rising +0.6% in Q4, short of +0.9% exp, with a previous Q3 read revised down to -0.6% from -0.5%.
GBP/USD broke 1.5420 resistance and is now en-route to 1.5450, after Bank of England Monetary Policy Committee member Martin Weale said Sunday he expects interest rates in the UK to rise quicker than the markets currently expects.
EUR traders also had some encouraging news, allowing the EUR/USD to pop above the 1.14 handle, after Greek Finance Minister Yanis Varoufakis said on Saturday, via Reuters, that an agreement with the Eurogroup on a new Greek funding deal would be reach, "even at the last minute", Varoufakis said, adding that "our strong stance, based on logic, will lead to an agreement, even at the 11th hour."
Key headlines in Asia
Japan's Econonic Minister Amari: Favourable situation towards beating deflation
Japan's Q4 GDP expands after two quarters of contraction
ECB's Draghi: 'Grexit' makes no sense
Greek FinMin: Optimistic on deal with EU, even at last minute
BoE's Weale expects rates to rise quicker than market expects
CFTC report: Specs reluctant to add or cut positions - TDS