Forex Asia Review – Yen ends rally, USDJPY rebounds

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USDJPY trimmed losses from Thursday following a sharp decline due to flight to safety amid global growth concerns, resulting in boosting yen. Japanese importers took advantage of the broad rally in yen the day before and sold off yen pairs. USDJPY bounced back up to reach 82.93 moving off the Thursday low of 82.31. EURJPY was lifted to 109.46 from 108.47.

 

EURUSD was little changed in the Asian session, opening at 1.3196 and trading a tight range between 1.3189 – 1.3211. Euro dropped sharply on Thursday after disappointing German and euro zone PMI raised concerns about a recession in Europe. The single currency has trimmed losses but caution is still presides. The pair will likely continue to consolidate ahead of the weekend and no key economic events on the calendar today.

GBPUSD opened in Asia at 1.5813 after a slight bounce in the US session, following a sharp decline on the back of weak UK retail sales. Cable traded a tight 1.5809-25 range in Asia.

 
USDCHF traded a soggy range of 0.9124-38.

 
AUDUSD consolidated after bouncing from a low of 1.0335, a two-month low reached in North American trading hours on Thursday. The growth-sensitive Australian dollar suffered a 1.4 percent loss against the greenback yesterday after being hammered by weak Chinese PMI data, causing investors to fret over global economic growth amid a slowdown in the world’s second largest economy. Also, China is a major export partner for Australia.

 

Looking ahead, the economic calendar is light today, except for new home sales data from the U.S. due later today in the North American trading session.