27 Mar 2014
Asia Recap: Antipodean currencies lead the FX pack
FXStreet (Bali) - The Antipodean currencies kept their positive tone in Asia, with the Kiwi being the best performer, followed by the Aussie some distance behind.
AUD/USD started the session slightly offered, yet kept the pullback quite shallow before a false breakout of 0.9220 (found a session low of 0.9213) led to a recovery towards 0.9240, where offers disallowed further upside. The failure to react to a lower CNY fix, together with news from Moody's, saying China property developers' liquidity remains stable, led to the spike higher in Asia.
The Kiwi continued to defy gravity by extending gains above Wednesday's high, setting a new weekly high of 0.8630 and just a whisker away from trend highs at 0.8640, printed last March 18. The upbeat trade data delivered by New Zealand earlier on the session spurred buyers to reinstate long contracts, with the impression being that no one wants to miss out on the NZD bandwagon. The current RBNZ monetary policy stance, in which continuous rate hikes are expected in the next few years, to potentially peak at 5% or beyond (subject to on going fundamental), are keeping the NZD buoyant even at such hefty levels.
USD/JPY was heavy from the get-go, however, a false break of 101.85 support provided an opportunity for longs to step in sending the rate over 20 pips back above the round 102.00. The rise in the pair had the Nikkei 225 to blame, after the benchmark Japanese index managed to turn its negative sentiment around, reversing losses in the tune of 1.6% to currently stand +0.15%.
The rest of currencies traded within familiar ranges. In Europe, it will be interesting to see how the Pound responds to the UK retail sales, the only major indicator due in the next session.
Main headlines in Asia
NZ trade balance keeps soaring
RBA watcher McCrann: AUD jawboning pointless
RBNZ keen to get rates back toward 4.25% - 4.50% asap - BNZ
Fed's Bullard believes US unconventional monetary policy has been effective
PBOC sets yuan mid-point at 6.1465
Moody's: China property developers' liquidity remains stable
AUD/USD started the session slightly offered, yet kept the pullback quite shallow before a false breakout of 0.9220 (found a session low of 0.9213) led to a recovery towards 0.9240, where offers disallowed further upside. The failure to react to a lower CNY fix, together with news from Moody's, saying China property developers' liquidity remains stable, led to the spike higher in Asia.
The Kiwi continued to defy gravity by extending gains above Wednesday's high, setting a new weekly high of 0.8630 and just a whisker away from trend highs at 0.8640, printed last March 18. The upbeat trade data delivered by New Zealand earlier on the session spurred buyers to reinstate long contracts, with the impression being that no one wants to miss out on the NZD bandwagon. The current RBNZ monetary policy stance, in which continuous rate hikes are expected in the next few years, to potentially peak at 5% or beyond (subject to on going fundamental), are keeping the NZD buoyant even at such hefty levels.
USD/JPY was heavy from the get-go, however, a false break of 101.85 support provided an opportunity for longs to step in sending the rate over 20 pips back above the round 102.00. The rise in the pair had the Nikkei 225 to blame, after the benchmark Japanese index managed to turn its negative sentiment around, reversing losses in the tune of 1.6% to currently stand +0.15%.
The rest of currencies traded within familiar ranges. In Europe, it will be interesting to see how the Pound responds to the UK retail sales, the only major indicator due in the next session.
Main headlines in Asia
NZ trade balance keeps soaring
RBA watcher McCrann: AUD jawboning pointless
RBNZ keen to get rates back toward 4.25% - 4.50% asap - BNZ
Fed's Bullard believes US unconventional monetary policy has been effective
PBOC sets yuan mid-point at 6.1465
Moody's: China property developers' liquidity remains stable