Forex News – Euro steadies in Asia, supported by possible China aid

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The euro was initially range bound against the dollar in the early Asian session, consolidating after a huge fall in the US session. EURUSD briefly broke out of its 1.3445-1.34714 range to jump to 1.3502, boosted by comments from the Peoples Bank of China adviser Li favouring more China aid to Europe. The rally was not sustained and euro fell back down to close at 1.3474.

GBPUSD mostly mirrored EURUSD movements. The pair opened in Asia at 1.5755 and see-sawed between 1.5736-90, down early and up later before falling back with EURUSD. EURGBP did little, opening at 0.8545 and trading a tight 0.8538-55 range.

 

EURJPY climbed up from the 103.60 open to a high of 103.91 alongside the jump in EURUSD on Japanese buys and comments from PBOC advisor Li suggesting more Chinese help for Europe. It later fell back to where it started with regional stock markets down and risk-off. USDJPY fell along with soggy Asian stock markets by 0.25 percent to 76.83 from an early high of 77.02. The regional benchmark, the MSCI Asia Pacific Index fell 1.7 percent , heading for a third week of losses. But further weakness in dollar/yen could be difficult with the threat of more BoJ action.

 

AUDUSD opened in Asia at 0.9995 after falling below parity in the US afternoon as Wall Street plummeted and commodity prices fell even harder. The Australian dollar is down 3.6 percent against the dollar so far this week on worries the euro-zone debt crisis could spread further. AUDUSD fell to 0.9972, its lowest since October 12, where it found strong support levels.