Asian Session – Dollar stalls after Fed-induced rally in quite Asian session
December 23, 2013 8:37 am
The US dollar gave back some of its Fed-induced gains during a relatively quiet Asian session on Monday. Markets in Tokyo were closed for a holiday and the upcoming Christmas holidays led to light volumes and little interest from investors to take on fresh positions.
Currency markets were still mostly focused on last week’s Fed announcement that it will begin tapering its $85 billion-a-month bond purchase program to $75-billion-a-month.
The dollar has since eased lower on profit-taking after hitting five-year highs against the yen following the Fed announcement. USDJPY traded in a tight range in Asia today, ended up 0.04% at 104.04.
The euro was able to recover some loses against the dollar after coming under pressure following the US GDP data last week and the Fed taper announcement. EURUSD ended the Asian session at 1.3684 with a 0.10% gain.
Sterling was steady and remained supported due to the pullback in the dollar, with GBPUSD ending at 1.6350 with a 0.09% gain.
Aussie has remained above a three-year low hit last week against the US currency despite the liquidity issues in China, which is Australia’s biggest trading partner. AUDUSD rebounded in Asia today to end at 0.8941, gaining 0.28%.
The US dollar will be in focus today as US data will be released on personal spending as well as a report on the revised University of Michigan Consumer sentiment.
The US dollar gave back some of its Fed-induced gains during a relatively quiet Asian session on Monday. Markets in Tokyo were closed for a holiday and the upcoming Christmas holidays led to light volumes and little interest from investors to take on fresh positions.
Currency markets were still mostly focused on last week’s Fed announcement that it will begin tapering its $85 billion-a-month bond purchase program to $75-billion-a-month.
The dollar has since eased lower on profit-taking after hitting five-year highs against the yen following the Fed announcement. USDJPY traded in a tight range in Asia today, ended up 0.04% at 104.04.
The euro was able to recover some loses against the dollar after coming under pressure following the US GDP data last week and the Fed taper announcement. EURUSD ended the Asian session at 1.3684 with a 0.10% gain.
Sterling was steady and remained supported due to the pullback in the dollar, with GBPUSD ending at 1.6350 with a 0.09% gain.
Aussie has remained above a three-year low hit last week against the US currency despite the liquidity issues in China, which is Australia’s biggest trading partner. AUDUSD rebounded in Asia today to end at 0.8941, gaining 0.28%.
The US dollar will be in focus today as US data will be released on personal spending as well as a report on the revised University of Michigan Consumer sentiment.
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