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28 Nov 2014
Asia Recap: The Greenback big winner across the board
FXStreet (Bali) - The US Dollar was the main winner in Asia, with the Yen and Aussie printing the largest losses.
USD/JPY saw heavy buying from the get go, with near term committed sellers/increased profit taking activity/exporters supply all evaporating at once, or at least overwhelmed by the strong demand off 117.70, courtesy of soft Japanese inflation data, which led the rate to print session highs at 118.30 amid thinner-than-usual conditions given US Thanksgiving.
AUD/USD bears followed the lead from USD/JPY, and kept pressing into lower territory, until the point of breaking back 0.85, although no momentum/follow-through so far, resulting on a pause sub 0.85 ahead of 0.8480 recent lows, with some corporate bids supporting AUDs.
NZD/USD also came under pressure despite positive NZ business confidence data, lowest printed at 0.7825, moving in sync with the Australian Dollar. The market appears to be uncomfortable holding NZD longs ahead of Monday's RBNZ Goernor Wheeler speech (19.45 GMT Sunday), which may see the policy-maker heighten the overvaluation rhetoric towards the Kiwi, given that NZDTWI remains almost unchanged to where it was when RBNZ first intervened.
EUR/USD and GBP/USD were also weak, confirming the USD Broad-based strength seen throughout the Asian session, with lowest achieved at 1.2443 and 1.5701 respectively.
Also worth noting that there was talk of month-end flows being USD negative given equity performance, but with US off, expect these flows to be more balanced, as most probably done pre-Thanksgiving, which would make sense with the USD weakness seen last US session on Wednesday.
Key headlines
NZ building permits for Oct soars
Japanese inflation comes on the soft side
NZ business confidence up, economy in sweet spot
Australian growth prospects revised lower - ANZ
Japan Retail Trade s.a (MoM) declined to -1.4% in October from previous 2.7%
Japan Industrial Production (YoY): -1% (October) vs previous 0.8%
Japan Large Retailer's Sales down to 0% in October from previous 0.5%
Japan Industrial Production (MoM) registered at 0.2% above expectations (-0.6%) in October
Japan Retail Trade (YoY) above forecasts (1.2%) in October: Actual (1.4%)
Japan Foreign investment in Japan stocks declined to ¥734.9B in November 21 from previous ¥909.8B
Japan Foreign bond investment down to ¥-45.1B in November 21 from previous ¥212.5B
United Kingdom Gfk Consumer Confidence came in at -2, below expectations (-1) in November
Australia Private Sector Credit (MoM) above forecasts (0.5%) in October: Actual (0.6%)
New Zealand M3 Money Supply (YoY): 5.5% (October) vs 5.3%
USD/JPY saw heavy buying from the get go, with near term committed sellers/increased profit taking activity/exporters supply all evaporating at once, or at least overwhelmed by the strong demand off 117.70, courtesy of soft Japanese inflation data, which led the rate to print session highs at 118.30 amid thinner-than-usual conditions given US Thanksgiving.
AUD/USD bears followed the lead from USD/JPY, and kept pressing into lower territory, until the point of breaking back 0.85, although no momentum/follow-through so far, resulting on a pause sub 0.85 ahead of 0.8480 recent lows, with some corporate bids supporting AUDs.
NZD/USD also came under pressure despite positive NZ business confidence data, lowest printed at 0.7825, moving in sync with the Australian Dollar. The market appears to be uncomfortable holding NZD longs ahead of Monday's RBNZ Goernor Wheeler speech (19.45 GMT Sunday), which may see the policy-maker heighten the overvaluation rhetoric towards the Kiwi, given that NZDTWI remains almost unchanged to where it was when RBNZ first intervened.
EUR/USD and GBP/USD were also weak, confirming the USD Broad-based strength seen throughout the Asian session, with lowest achieved at 1.2443 and 1.5701 respectively.
Also worth noting that there was talk of month-end flows being USD negative given equity performance, but with US off, expect these flows to be more balanced, as most probably done pre-Thanksgiving, which would make sense with the USD weakness seen last US session on Wednesday.
Key headlines
NZ building permits for Oct soars
Japanese inflation comes on the soft side
NZ business confidence up, economy in sweet spot
Australian growth prospects revised lower - ANZ
Japan Retail Trade s.a (MoM) declined to -1.4% in October from previous 2.7%
Japan Industrial Production (YoY): -1% (October) vs previous 0.8%
Japan Large Retailer's Sales down to 0% in October from previous 0.5%
Japan Industrial Production (MoM) registered at 0.2% above expectations (-0.6%) in October
Japan Retail Trade (YoY) above forecasts (1.2%) in October: Actual (1.4%)
Japan Foreign investment in Japan stocks declined to ¥734.9B in November 21 from previous ¥909.8B
Japan Foreign bond investment down to ¥-45.1B in November 21 from previous ¥212.5B
United Kingdom Gfk Consumer Confidence came in at -2, below expectations (-1) in November
Australia Private Sector Credit (MoM) above forecasts (0.5%) in October: Actual (0.6%)
New Zealand M3 Money Supply (YoY): 5.5% (October) vs 5.3%