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7 Jan 2014
Asia Recap: AUD under-performer, same old theme back?
FXstreet.com (Bali) - The Australian Dollar was the under-performer in Asia, as the short cover rally hit an impregnable wall ahead of 0.90, with a gradual absorption of bids being surprisngly steady even on a better-than-expected Australian trade balance, which narrowed sharply from -300m expected to -118 actual for the month of Nov.
Reports suggests that model funds and a top US bank sold AUD/USD, with stops snow-balling the rate towards 0.8925, where a daily Kijun line prevented initially prevented further damage, although late in Asia, the selling intensified again. There are talk of stops at 0.8915 while consensus also seems to point at a cluster of solid bids near 0.8900.
USD/JPY, meanwhile, saw a decent recovery capped by 104.50, as the Nikkei 225 managed to limit losses to 0.6% after a downg ap at the Tokyo open following the third consecutive day of losses in the SP500. A handful of bank reported solid concentration of offers at 104.50 ahead of 105.00. Bids reported at 103.80 with stops crowded below 103.70.
The rest of currencies, including the Euro and the British Pound, displayed timid moves, well contained by the lack of order flow in Asia. Ahead of Central Banks for both currencies this week, it is unlikely that any silly move gets much follow through.
Main headlines in Asia
Specs with greater conviction in directional bets - TDS
Seasonal studies hint stronger USD in January
The Golden Fat Finger
Senate confirms Yellen as Fed chairwoman
Australian trade deficit less than expected in Nov 2013
China’s cabinet imposes new rules in shadow banking fight
AUD/USD short cover rally falters, 0.8920 daily kijun eyed
Reports suggests that model funds and a top US bank sold AUD/USD, with stops snow-balling the rate towards 0.8925, where a daily Kijun line prevented initially prevented further damage, although late in Asia, the selling intensified again. There are talk of stops at 0.8915 while consensus also seems to point at a cluster of solid bids near 0.8900.
USD/JPY, meanwhile, saw a decent recovery capped by 104.50, as the Nikkei 225 managed to limit losses to 0.6% after a downg ap at the Tokyo open following the third consecutive day of losses in the SP500. A handful of bank reported solid concentration of offers at 104.50 ahead of 105.00. Bids reported at 103.80 with stops crowded below 103.70.
The rest of currencies, including the Euro and the British Pound, displayed timid moves, well contained by the lack of order flow in Asia. Ahead of Central Banks for both currencies this week, it is unlikely that any silly move gets much follow through.
Main headlines in Asia
Specs with greater conviction in directional bets - TDS
Seasonal studies hint stronger USD in January
The Golden Fat Finger
Senate confirms Yellen as Fed chairwoman
Australian trade deficit less than expected in Nov 2013
China’s cabinet imposes new rules in shadow banking fight
AUD/USD short cover rally falters, 0.8920 daily kijun eyed