Forex Asia Review – Markets steady ahead of US non-farm payrolls

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Euro was little changed in the Asian session after trimming losses following European Central Bank President Mario Draghi’s press conference yesterday. He gave no hints about the possibility of more policy easing. EURUSD traded a range between 1.3143 and 1.3161.  EURJPY was steady between 105.33 and 105.55.

 

Most investors are waiting on the sidelines due to key upcoming  risk events.  Later today we have the US non-farm payroll and over the weekend there are elections in France and Greece.

 

The dollar held steady versus the yen during Asian trading hours, but could face downside risks if the non-farm payrolls data are disappointing. Weak numbers could renew speculation for further monetary easing from the Federal Reserve, which is usually dollar-negative.  The U.S. jobs report is expected to show an increase of 170,000 in April, versus 120,000 in March. USDJPY traded between 80.12 and 80.26, remaining above a 10-week low of 79.63 hit on Tuesday.

 

The Australian dollar gained over 20 pips against the US dollar to hit a high of 1.0277 after the Reserve Bank of Australia released its official Monetary Policy Statement from Tuesday’s policy meeting. The absence of stating an intention to ease policy helped keep the aussie from falling further. AUDUSD fell to a one-month low of 1.0238 after the RBA cut rates by 50 basis points earlier this week.

 

Sterling has been range-bound against the dollar since Tuesday. GBPUSD traded a tight range of 1.6179 1.6193 in Asia as investors await the US non-farm payrolls.