Forex Asia News – Aussie Dollar makes two-week high against weaker US Dollar

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The Euro recovered against the US Dollar in the Asian session to gain over 150 pips hitting a new week high of 1.8277. EURUSD gained momentum after stops were hit at 1.4204, the highs from yesterday. The Euro was given some respite from recent downturns due to heavy sell-offs from investors concerned about the Greek debt crisis. EURUSD was given a further push up aided by a weaker Dollar which fell across the board yesterday on poor economic data revealing a weaker than expected GDP and rising unemployment claims, indicating that the U.S. economy is still struggling to recover.

 

Sterling extended gains against the US Dollar from the prior session, edging up around 70 to highs of 1.6446 from lows of 1.6378. The Pound was mainly trading off developments in the greenback. Poor U.S. economic data led to the Dollar decline which helped lift the Pound to new two weeks highs. GBPUSD may be due for a pullback and the 1.64 area may be sticky. Focus will be on where the Dollar will head as well as any new developments regarding signs of a rate hike in the U.K.

 

The Japanese Yen extended gains against the weaker U.S. Dollar well into the Asian session. USDJPY dropped from highs of 81.39 down to 80.87. The Yen was struggling against the US Dollar in the past week but was finally given a break on Wednesday after optimistic economic data on Japanese exports growing more than expected. Also today core CPI data showed an increase in CPI on an annualized basis. Meanwhile, Yen strength was aided by a weakening greenback after U.S. economic data showed the U.S economy is in a slowdown and consumer spending declined in the first quarter of the year.

 

The Australian Dollar marked new two week highs, rising throughout the session against the broadly weaker US Dollar, aided by rising commodity prices. The Aussie is a commodity-linked currency, meaning it has a tight correlation with commodity prices, and usually mirrors them. Australia is a large producer of gold which has been rising steadily in the session. AUDUSD gained over 110 pips from lows of 1.0607 to highs of 1.0717.

 

Gold rose steadily in Asian trading, making gains of around $8 from lows of $1,518.03 $1,525.98. The precious metal is buoyed by demand as investors turn to the safe haven investment to shelter themselves from European debt problems and concerns that the IMF may not proceed with submitting its portion of aid to Greece next month.

 

 

EURUSD USDJPY GBPUSD AUDUSD EURJPY GOLD
OPEN

(22:00 GMT)

1.0643 81.30 1.6401 1.0643 114.98 1518.63
DAY’S HIGH 1.0717 81.39 1.6446 1.0717 115.70 1525.98
DAY’S LOW 1.0607 80.87 1.6378 1.0607 114.67 1518.03
CLOSE

(06:00 GMT)

1.0693 81.03 1.6442 1.0693 115.48 1524.78