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6 Feb 2015
Asia Recap: Aussie well bid after RBA SoMP
FXStreet (Bali) - A tamed affair in Asia, with the Aussie the only real mover following the RBA Quarterly Statement on Monetary Policy, which was interpreted by market participants as less dovish-than-expected, with the main focus shifted now to the US NFP.
AUD/USD saw a 60 pips bounce off 0.77 support area, tripping some sizeable stops above the 0.7750 handle, before demand drying up, leading to a retracement towards 0.7710 (76.8% fib retra from today's spike) before buyers came back in, taking the rate back above 0.7725.
NZD/USD was better bid, threatening sticky resistance at 0.7425/30, with the short squeeze looking like it may have further to go should a break of the mentioned resistance be confirmed. Today's NZ public holiday-Waitangi Day saw volumes lower-than-usual, with most Kiwi demand coming via its correlation with a ST bullish AUD/USD.
USD/JPY saw subdued activity, with volumes well below normal, as one would expect, ahead of the US NFP. The pair drafted gradually lower during Tokyo, with the transition commencing at 117.60 session highs until finding minor support at the 117.25 area. The Nikkei 225 was up by 3/4 of 1%, tracking the positive mood from US equities.
Key headlines
Australian construction sector index up in January
Japan JP Foreign Reserves increased to $1261.1B in January from previous $1260.5B
RBA SoMP: Feb rate cut to support demand, lowers 2015 GDP forecast
Bloomberg survey: Economists' view on next RBA rate cut split between March and April
Japan Coincident Index up to 110.7 in December from previous 109.2
Japan Leading Economic Index climbed from previous 103.9 to 105.2 in December
AUD/USD saw a 60 pips bounce off 0.77 support area, tripping some sizeable stops above the 0.7750 handle, before demand drying up, leading to a retracement towards 0.7710 (76.8% fib retra from today's spike) before buyers came back in, taking the rate back above 0.7725.
NZD/USD was better bid, threatening sticky resistance at 0.7425/30, with the short squeeze looking like it may have further to go should a break of the mentioned resistance be confirmed. Today's NZ public holiday-Waitangi Day saw volumes lower-than-usual, with most Kiwi demand coming via its correlation with a ST bullish AUD/USD.
USD/JPY saw subdued activity, with volumes well below normal, as one would expect, ahead of the US NFP. The pair drafted gradually lower during Tokyo, with the transition commencing at 117.60 session highs until finding minor support at the 117.25 area. The Nikkei 225 was up by 3/4 of 1%, tracking the positive mood from US equities.
Key headlines
Australian construction sector index up in January
Japan JP Foreign Reserves increased to $1261.1B in January from previous $1260.5B
RBA SoMP: Feb rate cut to support demand, lowers 2015 GDP forecast
Bloomberg survey: Economists' view on next RBA rate cut split between March and April
Japan Coincident Index up to 110.7 in December from previous 109.2
Japan Leading Economic Index climbed from previous 103.9 to 105.2 in December