Forex Asia Daily Review – Aussie on rebound mood

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In a rather calm Asian session, as in Japan today is a bank holiday the EURUSD pair held near its Friday closing, retesting the four month high of 1.4182, without managing to break above. The Dollar continues to show signs of weakness as the nuclear crisis persist and the oil prices are about to surge to new highs as the Libyan crisis escalated during the weekend due to the Westerns physical involve. Moreover the agreement for extending the base of the EFSF ten days ago still offers support to the single currency, easing the fears for the peripheral’s debts. The EURUSD pair now is trading at 1.4171, remaining in sight of the multi month high.

The GBPUSD pair was traded throughout the Asian session on a narrow range, between 1.6202 and 1.16232. The pair is facing resistance at 1.6240 and 1.6255 in order to hit again the 1.6300 levels. The Sterling opened the first session of the week at 1.6217, gaining within an hour against the US Dollar some 15 pips to reach a session high of 1.6232, since then it gradually slipped to a session low of 1.6202 at 01:00 GMT. The last few hours the pair is moving sluggishly. Currently the Sterling is trading against the Dollar at 1.6210. The GBPJPY cross pair had a similar course with the GBPUSD pair, as it opened the session climbing to a high of 131.42, before falling to a session low of 131.06. The cross pair is now trading at 131.17.

The AU Dollar was firmer against its US counterpart today pumping support from its cross pair with the Yen which spurred after the G7 intervention on Friday. The AUDUSD gained some 70 pips to climb above parity again hitting a high of 1.0021. The Aussie is set for further gains as it is trading close to the resistance level of 1.0041. The Australian Dollar is now trading against the US Dollar at 1.0013. The EURAUD plummeted to a three days low of 1.4140 pressurized by the general AU Dollar strength across the board.

The US Dollar held its high levels against the Japanese Yen, after the coordinated intervention from the G7 central bank in the market. However, the session can be characterized as silent for the USDJPY pair, as it was trading between 80.72 and 81.01, on a bank holiday in Japan. The EURJPY moved similarly to the USDJPY as there was not much volatility in the prices, holding most of the gains from Friday.

The gold came again on safe haven mode, after the bombardments in Libya from the western forces heightening the tension in the oil producing region. The safe haven metal climbed to a five days high of USD 1429.3 an ounce. The precious metal is currently trading at USD 1427.0 an ounce.

EURUSD USDJPY GBPUSD AUDUSD EURJPY GOLD
OPEN

(21:00 GMT)

1.4176 80.85 1.6217 0.9956 114.63 1424.2
DAY’S HIGH 1.4182 81.02 1.6232 1.0021 114.79 1429.3
DAY’S LOW 1.4158 80.72 1.6202 0.9951 114.44 1423.3
CLOSE

(06:00 GMT)

1.4171 80.95 1.6210 1.0019 114.73 1426.9