Forex Asia Review – Dollar rises against basket of currencies in the wake of Asian session

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Dollar rises against basket of currencies in the wake of Asian sessionThis week’s first Asian session see’s the Dollar strengthening across the board as many of the majors opened up with a 30-40 dip drop from Friday’s US session close, against the USD. Investors have taken comfort in the USD, in spite of the lower than expected nonfarm payrolls which came out flat at 0 from an expected figure of 75K.

The Euro opened up today some 40+ pips lower from Friday’s close at 1.4161 and continued to decline to a 3 week low of 1.4135. The recent resurfacing of European debt woes has seen caution from investors and as a result many had taken short positions in riskier currencies such as the Euro. For most of the Asian session the EURUSD traded between the 1.4170 and 1.4140 range, as it leveled off in later session to trade steadily around 1.4165. The Euro is currently on a continuous downtrend since August 30th, with support for the single currency seen at 1.4100.

The Sterling experienced a gap of over 60 pips in the wake of today’s Asian session as the GBPUSD opened at a low point of 1.6150 and continued to drop to a low of 1.6133 in the early part of the Asian session. The pair did come back to recover some losses, gaining over 40 pips from its low to trade at 1.6180 for the latter part of the Asian session.

The Australian Dollar opened the Asian session at 1.0603 and dropped to a low of 1.0568 as the AUDUSD pair continuously dropped throughout the start of the Asian session. Positive second quarter Company Gross Operating Profits did see a the Aussie gain some ground around 01:30 GMT as the data came out at 6.7%, doubling the expected figure of 3.1%. The AUDUSD gained almost 20 pips within minutes from the release of the data, an event which enabled the Aussie to recoup some losses and trade around the 1.0594 mark for the remainder of the session.

The Japanese Yen opened up slightly weaker against the USD as the USDJPY pair opened up at 76.89 and went on to rise to 76.94 in early session. The pair failed to sustain the elevated start to the weak, with respect to Friday’s close, and dropped back down surpassing Friday’s close of 76.78 and drop to a low of 76.71.