The disturbed yen found little relief of blame in Asia early on Wednesday trading action, the only major currency displaying a clear trend as risk appetite remained buoyant and investors continued to bet on more stimulus from China and perhaps even Japan.
The dollar purchased 103.66, having reach a 3-1/2 week topmost mark of 103.71 as U.S. stocks. SPX rallied to a record closing high. A break over the March 7 highest level of 103.77 will take it back to highs not seen since late January.
The euro floated near a three-week high of 143.07, while the Australian dollar was not far off a 10-month highest post of 95.97 set on Tuesday.
The New Zealand dollar fetched 89.42 yen, having scaled a 6-1/2 year peak of 89.91.
“The combination of rising global equity markets with rising U.S. Treasury yields is a catalyst for USD/JPY to move higher,” said Kit Juckes, analyst at Societe Generale.
Juckes also said that this week’s increase in Japan’s sales tax to 8 percent from 5 percent also logs a huge challenge to Prime Minister Shinzo Abe’s recipe of hyper-easy financial policy, fiscal spending and promised reforms.
“As the prospect of further BoJ easing gets closer, now is the time for USD/JPY to head towards and quite probably through 105 in the coming weeks,” he added.
Meanwhile, the euro bounced higher to $1.3794, maintaining its recovery from a one-month low of $1.3704 hit last Friday. That saw the dollar index .DXY dive a bit to 80.085, but still stuck in a slim 79.800-80.300 scope seen in the past week.
Euro bulls are betting the European Central Bank (ECB) will stand pat on policy at its review on Thursday even as the threat of deflation has escalated.
Numbers on Tuesday was encouraging with German unemployment declining for a fourth month, while a business survey displayed an across-the-board hike in factory output that proposed a more entrenched recovery for the euro zone
In contrary, a recent string of unsatisfactory Chinese data has investors speculating on more action from Beijing. Just this week, two surveys highlighted persistent weakness in China’s manufacturing division.
Such stimulus hopes have in part helped support demand for commodity currencies. The Australian dollar reach a four-month peak of $0.9310 on Tuesday and last exchange at $0.9241.
It’s New Zealand peer achieved a 2-1/2 year high of $0.8702, before consolidating at $0.8617.
There is no major economic data due out of Asia on Wednesday, leaving many investors waiting for Friday’s release of U.S. non-farm payrolls.
The material has been provided by InstaForex Company – www.instaforex.com
The disturbed yen found little relief of blame in Asia early on Wednesday trading action, the only major currency displaying a clear trend as risk appetite remained buoyant and investors continued to bet on more stimulus from China and perhaps even Japan.
The dollar purchased 103.66, having reach a 3-1/2 week topmost mark of 103.71 as U.S. stocks. SPX rallied to a record closing high. A break over the March 7 highest level of 103.77 will take it back to highs not seen since late January.
The euro floated near a three-week high of 143.07, while the Australian dollar was not far off a 10-month highest post of 95.97 set on Tuesday.
The New Zealand dollar fetched 89.42 yen, having scaled a 6-1/2 year peak of 89.91.
“The combination of rising global equity markets with rising U.S. Treasury yields is a catalyst for USD/JPY to move higher,” said Kit Juckes, analyst at Societe Generale.
Juckes also said that this week’s increase in Japan’s sales tax to 8 percent from 5 percent also logs a huge challenge to Prime Minister Shinzo Abe’s recipe of hyper-easy financial policy, fiscal spending and promised reforms.
“As the prospect of further BoJ easing gets closer, now is the time for USD/JPY to head towards and quite probably through 105 in the coming weeks,” he added.
Meanwhile, the euro bounced higher to $1.3794, maintaining its recovery from a one-month low of $1.3704 hit last Friday. That saw the dollar index .DXY dive a bit to 80.085, but still stuck in a slim 79.800-80.300 scope seen in the past week.
Euro bulls are betting the European Central Bank (ECB) will stand pat on policy at its review on Thursday even as the threat of deflation has escalated.
Numbers on Tuesday was encouraging with German unemployment declining for a fourth month, while a business survey displayed an across-the-board hike in factory output that proposed a more entrenched recovery for the euro zone
In contrary, a recent string of unsatisfactory Chinese data has investors speculating on more action from Beijing. Just this week, two surveys highlighted persistent weakness in China’s manufacturing division.
Such stimulus hopes have in part helped support demand for commodity currencies. The Australian dollar reach a four-month peak of $0.9310 on Tuesday and last exchange at $0.9241.
It’s New Zealand peer achieved a 2-1/2 year high of $0.8702, before consolidating at $0.8617.
There is no major economic data due out of Asia on Wednesday, leaving many investors waiting for Friday’s release of U.S. non-farm payrolls.
The material has been provided by InstaForex Company – www.instaforex.com
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