Forex Asia Review – AUD falls on disappointing China data, euro dips to new 3-mth lows

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Euro edged lower to a new 3-1/2 low as risk appetite was low, resulting in support for the safe haven dollar. News from the US that  JPMorgan announced a surprise $2 billion loss on synthetic credit securities underscored risks to global financial markets and brought back memories of Lehman brothers. Further dampening sentiment was disappointing data from China, the world’s largest economy.  Meanwhile, the Europe debt crisis and political uncertainty in Greece is continuing to weigh on the euro.

EURUSD opened in Asia at 1.2934 and fell to a fresh 3-1/2 low of 1.2904.

EURGBP dipped to 0.7995, the lowest level since 2nd November, 2008.

Sterling pulled back after s sharp rally on Thursday following the Bank of England policy announcement, which stated the bank was holding back from more quantitative easing. GBPUSD fell from the Thursday high of 1.6181 down to 1.6115 in Asian trading.

USDJPY consolidated in the Asian session between 79.80/97after making gains in the US session following an improved report on US jobless claims. EURJPY edged lower in Asia to 103.05 from the Thursday high of103.76.

The Australian dollar fell in reaction to disappointing Chinese economic data. China is Australia’s major trading partner. AUDUSD dropped to 1.0040 from an earlier high of 1.0080. China released data on inflation and industrial production.