2013-03-19 08:16 Asian Session – Yen extends losses
March 19, 2013 8:16 am
Yen extended losses in Tuesday’s Asian session as risk aversion subsided as concerns over the euro zone that flared up on Monday are easing.
Dollar-yen and other yen crosses continued to retrace from spike lows early in Asia yesterday. USDJPY climbed to a session high of 95.72 yen, up 0.4 percent in the session and up from Monday’s low of 94.30.
Today the new Bank of Japan governor, Haruhiko Kuroda takes over from Masaaki Shirakawa. Kuroda is seen as more aggressive on policy easing and has pledged to adopt tougher stimulus measures, to reflate the sluggish Japanese economy. Such measures tend to weaken a currency. The long term bias for yen is bearish.
Euro managed to break through key resistance of 124.00 yen. EURJPY tracked the USDJPY higher, rising to 124.11 from 123.44 yen. However, the cross remains vulnerable to selling on the continuing bias to sell euro on rallies. Important data to watch is upcoming German ZEW Economic Sentiment.
In other yen crosses, GBPJPY similarly rose to 144.60 from 143.92 yen. AUDJPY rose from 99.07 to 99.44 yen.
Euro remained steady in Asia, continuing to trade sideways against the dollar. EURUSD opened in Asia at $1.2957 after getting a boost late in the US session yesterday, when the pair managed to recover some of the day’s losses and attempted to fill the opening gap but found resistance at a high of $1.2994.
GBPUSD traded a very tight 30-pip range in Asia, between $1.5083 and $1.4957 in thin trading. EURGBP was directionless, consolidating between 0.8565-84, unable to fill the opening gap from Monday. UK inflation data will be in focus today.
AUDUSD opened in Asia at $1.0399 and fell retraced from an early high of $1.0404 to 1.0373 on mining company Rio Tinto’s announcement that they see downward pressure on iron ore prices in the second quarter. Australia has a large resource sector and is a major exporter, thus the aussie is sensitive to commodity prices. The RBA March minutes provided no new insights but the easing bias was unambiguous.
EURUSD hit a low of $1.2881 in Monday trading after dropping 1.4 percent from Friday’s close above $1.30.
Yen extended losses in Tuesday’s Asian session as risk aversion subsided as concerns over the euro zone that flared up on Monday are easing.
Dollar-yen and other yen crosses continued to retrace from spike lows early in Asia yesterday. USDJPY climbed to a session high of 95.72 yen, up 0.4 percent in the session and up from Monday’s low of 94.30.
Today the new Bank of Japan governor, Haruhiko Kuroda takes over from Masaaki Shirakawa. Kuroda is seen as more aggressive on policy easing and has pledged to adopt tougher stimulus measures, to reflate the sluggish Japanese economy. Such measures tend to weaken a currency. The long term bias for yen is bearish.
Euro managed to break through key resistance of 124.00 yen. EURJPY tracked the USDJPY higher, rising to 124.11 from 123.44 yen. However, the cross remains vulnerable to selling on the continuing bias to sell euro on rallies. Important data to watch is upcoming German ZEW Economic Sentiment.
In other yen crosses, GBPJPY similarly rose to 144.60 from 143.92 yen. AUDJPY rose from 99.07 to 99.44 yen.
Euro remained steady in Asia, continuing to trade sideways against the dollar. EURUSD opened in Asia at $1.2957 after getting a boost late in the US session yesterday, when the pair managed to recover some of the day’s losses and attempted to fill the opening gap but found resistance at a high of $1.2994.
GBPUSD traded a very tight 30-pip range in Asia, between $1.5083 and $1.4957 in thin trading. EURGBP was directionless, consolidating between 0.8565-84, unable to fill the opening gap from Monday. UK inflation data will be in focus today.
AUDUSD opened in Asia at $1.0399 and fell retraced from an early high of $1.0404 to 1.0373 on mining company Rio Tinto’s announcement that they see downward pressure on iron ore prices in the second quarter. Australia has a large resource sector and is a major exporter, thus the aussie is sensitive to commodity prices. The RBA March minutes provided no new insights but the easing bias was unambiguous.
EURUSD hit a low of $1.2881 in Monday trading after dropping 1.4 percent from Friday’s close above $1.30.
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