Forex Asia Review – Yen holds firm

Important: This page is part of archived content and may be outdated.

The U.S. dollar took a pause from the last two days of advance, allowing risk currencies and commodities to retrace slightly in Asia, ahead of key U.S. jobless data today and position squaring ahead of  the Easter holidays when many markets will be closed. Also a lack of key economic data during the Asian session kept trading quiet.

 

The ICE dollar index  which tracks USD performance against major currencies, remained close to a two-week high of 79.92 but had given back a bit of ground to 79.67.

 

EURUSD opened the Asian session at 1.3140 after bouncing from a three-week low reached on Wednesday amid growing concerns over Spanish debt following weak demand at a Spanish bond auction. Short-covering lifted the pair slightly to a session high of 1.3157.

 

GBPUSD tracked the EURUSD and edged up as well to 1.5906 from the open level of 1.5885. Focus will be on the Bank of England policy meeting later today and interest rate announcement.

 

Yen continued to hold firm against the dollar and euro, partly attributed to safe haven flows in a cautious risk averse environment. USDJPY opened in Asia at 82.40 and slid to 82.11, while EURJPY opened at 108.33 and was little changed , briefly touching lows of 108.00.

 

AUDUSD bounced to 1.0304, moving off a Wednesday low of 1.0242. The aussie had suffered sharp losses this week after the Reserve Bank of Australia minute sand poor trade balance numbers. A bounce in commodity prices helped lift the commodity-price sensitive currency.