Forex Asia Review – Asian markets calm ahead of ECB

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ecbThe euro was little changed against the dollar after tumbling on Wednesday on weak data from both Europe and the U.S. This dampened risk appetite in Asian markets. Euro zone data showed a downturn in the manufacturing sector and a rise in unemployment. In the U.S. the ADP jobs numbers also disappointed.

The focus is now on the European Central Bank policy meeting later in the day.  Also on the economic calendar is a bond auction by the Spanish government, the first since Standard and Poor’s cut Spain’s credit rating by two notches last week.

EURUSD opened in Asia at 1.3157 and drifted lower to 1.3135. On Wednesday, the pair fell 0.8 percent to a low of 1.3132.

EURGBP fell to a 22-month low of 0.8111 yesterday and has been consolidating the past three sessions .

Against the safe-haven yen, euro  was steady. EURJPY traded a tight range between 105.43 and 105.30.

Dollar was little changed against yen, having retreated from Wednesday’s high of 80.6 yen when dollar fell to 80.04 after the disappointing ADP jobs data.

GBPUSD  edged lower from 1.6197 to 1.6175 in Asian trading, declining for the fourth day since the eight-month high hit on Monday.

The New Zealand dollar fell to its lowest level in more than three months after data showed the unemployment  rate unexpectedly rose to 6.7 percent from 6.4 percent. NZDUSD dropped to 0.8038 from 0.8105.