The Asian session was relatively quiet due to many markets in the region being closed for public holidays. Most currency pairs consolidated, with many investors being cautious ahead of the key U.S. Non Farm payroll (NFP) report due this Friday. March NFP is forecast to rise by 205,000 versus February’s 227,000.
EURUSD was steady during the Asian session after a choppy day on Thursday, and traded a very tight range between 1.3052 and 1.3070. Euro is under pressure on concerns of Spain’s debt and rising Spanish bond yields and could fall further in a knee-jerk reaction if the NFP numbers are disappointing and a significant downward revision to the prior month’s numbers may see risk assets like euro fall.
GBPUSD retraced a bit more to 1.5861 after opening in Asia at 1.5824. On Thursday, sterling fell after weak manufacturing output numbers but then steadied after the Bank of England kept rates on hold and did not expand quantitative easing (which usually weakens a currency).
USDJPY opened in Asia at 82.35 and drifted lower to 82.15 in light trading in the region ahead of the Easter holidays. Also most investors are waiting on the sidelines for the US NFP data.
AUDUSD traded a range of 1.0284 and 1.0315, only barely off a 2-1/2 month low hit earlier this week when the aussie fell sharply after the Reserve Bank of Australia’s dovish policy meeting. The benchmark interest rate was kept on hold at 4.25 percent.
Going into the European trading session, volumes are also expected to be light as most European markets will be closed for Good Friday.