Forex Asia Review – USDJPY, USDCHF spikes but no central bank intervention

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USDJPY opened Asia at 76.43 and first edged down to 76.75 close to the all time low on broadly weaker US Dollar and a sell off by Japanese exporters. Suddenly USDJPY jumped to 76.64, causing traders to think it was a bank of Japan intervention but it was later denied. Rumours were that there were just large orders from big firms.The pair soon settled around 76.10. Market players want to stay off lows being wary about the possibility of intervention because of the low dollar levels.

 

USDCHF did little initially in the Asian session but just before the session close the pair surged to 0.8983 from 0.8879. Same with EURCHF, it jumped to 1.2323 from 1.2173. There was presumed Swiss National Bank intervention but this was denied. Similar case with the USDJPY. It was just market jitters since yesterday there were rumours that the SNB could lift its EURCHF floor to 1.25 from 1.20.

 

EURUSD opened in Asia at 1.3699 after being lifted in the last hour of New York trading on news that the Greece-Troika telephone conference was “satisfactory” and that progress had been made in order for Greece to receive the next 8 billion euros of aid disbursement. EURUSD then eased down to 1.3678 on profit taking but soon climbed back up to 1.3721, lifted by position squaring ahead of the U.S. Federal Reserve’s policy decision later today.
GBPUSD opened Asia at 1.5730 to extend the climb seen from the prior US session then eased off into a choppy range between highs of 1.5744 and lows of 1.5720 with the market awaiting the results of the US monetary policy meeting (FOMC) later today. EURGBP opened at 0.8704 and rose to 0.8722 on expectations Greece will get its next aid payment.

 

AUDUSD opened in Asia at 1.0273 and initially eased down to a session low of 1.0232 as investors sold off aussie on news headlines that IMF cut global growth forecasts as well as eased for the Australian economy. AUDUSD soon rebounded to a session high of 1.0290 as investors soon digested news that the Greece-troika conference call was “satisfactory”. Also USD positioning and selling ahead of the FOMC meeting later helped buoy the AUD.

 

Gold prices hovered around $1,800 an ounce but just before the close of Asia, it surged to $1,814.85 as investors anticipate the conclusion of a U.S. Federal Reserve policy meeting, expecting the FOMC to take quantitative easing measures which would result in a weaker US dollar. Gold and dollar have an inverse relationship.