Forex Asia Review – Dollar weakens across the board, yen, aussie fluctuate

Important: This page is part of archived content and may be outdated.

Forex Market News - Euro continues to struggle as debt talks are seen in pesimistic focusEURUSD opened in Asia at 1.4175 after falling in prior session trading on stress in the EU banking sector. It fell further to 1.4121 but soon rebounded bounced as Asian stock markets picked up momentum and overall sentiment improved. Dip buying helped lift euro plus a broadly weaker USD helped. The greenback also came under pressure in Asia after rumors that Chinese Yuan may be allowed to appreciate faster against USD which contributed to dollar weakness across the board.


GBPUSD opened at 1.6131 and traded down to a fresh three-week low of 1.6108 early with risk sold in a continuation of the trend from the U.S. session. But Sterling soon rebounded due to broad USD weakness as rumors spread that the Chinese CNY may be fixed at a higher rate against the dollar. Cable rallied to 1.6185 before steadying. EURGBP opened at 0.8786, fell off to 0.8761 and then bounced to 0.8800.


USDJPY spiked at one point to 77.20 from an early low of 76.52 but the yen soon pared losses against the dollar and began to gain strength as Asian bourses moved up and dollar weakness across the board helped push up yen. USDJPY fell back down to 76.60 as Japanese finance officials watched the markets closely and repeated its warning of the possibility of a market intervention. The yen is perceived as a safe haven and investors demand it due to the financial turmoil and fears of a U.S. recession recently.


USDCHF was relatively flat but steady in the Asian session, trading a tight range between 0.7238 and 0.7279. EURCHF dipped down to 1.0251 early before bouncing later to 1.0349. Yesterday the Swiss National Bank announced it is increasing measures to counter the franc strengthen by increasing liquidity in the money market, hence investors are cautious about buying up the Swissie.

The Australian dollar opened in Asia at 1.0177 after a losing streak against the U.S. dollar due to renewed Europe debt crisis concerns but began to rebound with a slight hiccup after disappointing unemployment data brought aussie back down to 1.0112. AUDUSD recovered quickly to continue to rise to 1.0276 on speculation of USD weakening.