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24 Dec 2013
Session recap: Nikkei / Yen dynamic and continued Aussie weakness define quiet Asian session
FXstreet.com (Barcelona) - It has been another low-volume, low-data trading session in Asia but with reasonable downside volatility appearing in both the Aussie Dollar and Japanese Yen more than midway through the trading session.
Data flow nearly non-existant during Asian sessions Monday and Tuesday
Yesterday, there was no data. Today, there is only the Bank of Japan’s Monthly Report on the economy due out at 05:00 GMT. Right now, things appear to be deriving their directional clues from the Nikkei equity index in Japan – which is trading higher at above 16,000 today and pressuring the Yen as money flows out of safety and into riskier equity assets.
Additionally, the Aussie Dollar is under pressure as Asia-Pacific investors heed the Reserve Bank of Australia’s Governor Stevens’ comments to the Australian Financial Review earlier this month where he indicated an interest in taking the Aussie Dollar / US Dollar down to the 0.8500 level. His comments and an oveall lack of data that would change he and his colleagues’ minds have served to weigh down the Aussie versus the greenback for all of December.
Main headlines in Asia:
DXY spends another day in the red and below key resistance at 80.72. Have the bears won?
Will the PBoC intervene to inject cash today?
USD/JPY hits fresh daily highs above 104.40 as Nikkei extends gains
PBoC injects cash, cools credit fears
Data flow nearly non-existant during Asian sessions Monday and Tuesday
Yesterday, there was no data. Today, there is only the Bank of Japan’s Monthly Report on the economy due out at 05:00 GMT. Right now, things appear to be deriving their directional clues from the Nikkei equity index in Japan – which is trading higher at above 16,000 today and pressuring the Yen as money flows out of safety and into riskier equity assets.
Additionally, the Aussie Dollar is under pressure as Asia-Pacific investors heed the Reserve Bank of Australia’s Governor Stevens’ comments to the Australian Financial Review earlier this month where he indicated an interest in taking the Aussie Dollar / US Dollar down to the 0.8500 level. His comments and an oveall lack of data that would change he and his colleagues’ minds have served to weigh down the Aussie versus the greenback for all of December.
Main headlines in Asia:
DXY spends another day in the red and below key resistance at 80.72. Have the bears won?
Will the PBoC intervene to inject cash today?
USD/JPY hits fresh daily highs above 104.40 as Nikkei extends gains
PBoC injects cash, cools credit fears