Forex Asia Review – Euro slides ahead of Spain debt sale

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EURUSD pulled back in the Asian session after a sharp rally in the previous session which saw the pair off a two-month low. Investors took profits and are being cautious ahead of a Spanish bond auction late today. Yields on the 10-year bonds rose above 6 percent yesterday, the highest since December.  Spain will sell 12-month and 18-month bills today. Any disappointment will put the euro under further pressure. EURUSD opened in Asia at 1.3140 and slipped to 1.3103.

 
GBPUSD tracked the EURUSD and eased down to 1.5869 from an early high of 1.5903. EURGBP opened in Asia at 0.8262 after a 60 pip rise yesterday and slid to 0.8251.
USDCHF was due for a pullback after a sharp decline in the US session which brought it down to 0.9139 before bouncing to 0.9171.

 

USDJPY was little changed in Asian trading, remaining on the downside close to the seven-week low of 80.28 touched yesterday. Risk aversion kept the safe haven yen firm. EURJPY slid from 105.64 to 105.32.

 

AUDUSD fell  from 1.0354 to 1.0310 after Reserve Bank of Australia policy meeting minutes showed it would consider cutting rates in May if inflation data due next week confirmed a benign inflation outlook. Some are speculating a 25 basis point cut at the next May 1 RBA meeting.