Forex News – Euro steady ahead of Ecofin; aussie dollar rises

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Euro remained steady in Asian trading as investors prefer to remain on the sidelines until more news comes out of the Ecofin meeting in Brussels today. Hopes for measures to tackle the sovereign debt crisis lend the euro some support.So far euro-zone finance ministers agreed to extend the capacity of the EFSF rescue fund for indebted countries but have yet to agree on the amount. There is talk of more money for the IMF so it could lend to troubled members such as Italy. EURUSD opened in Asia at 1.3315 and inched up to 1.333 before easing to 1.3328. The single currency remains vulnerable to headline news from the Ecofin meeting.

 

The British pound opened in Asia at 1.5591 and closed up at 1.5589. Recently cable has been taking direction from the EURUSD pair and remains buoyed by optimism that European officials are moving toward closer fiscal union which helps in tacking the debt crisis.

 

The safe haven yen remains weaker versus last week due to short term optimism from positive developments in Europe though investors remain cautious. Against the yen, the dollar saw a brief surge to 78.10 after some weak Japanese manufacturing data before sliding back down to 77.85. EURJPY rose to 104.12 before falling back to 103.77.

 

USDCHF remained rage bound between 0.9183 – 0.92118. EURCHF was also little changed after its big drop yesterday when it fell 0.4 percent. The pair traded between 1.2257 – 1.2275.

 

The Australian dollar climbed 0.8 percent against the dollar, boosted by data that showed business investment rose by more than forecast in the third quarter, and by the most in 16 years. AUDUSD hit the highest level in over a week, climbing to 1.008 from 1.000 in Asian trading. The OECD has forecast in its global economic outlook that Australia would be the one of the fastest growing economies in the world in 2012.

 

The New Zealand dollar gained against the US dollar and most of its major counterparts after a report showed home-building approvals rose in October for the third time in four months. This boosted the kiwi since New Zealand is trying to recover from a devastating earthquake earlier this year. NZDUSD peaked at its highest level since November 17, hitting a session high of 0.7663 from 0.7596.