Most major currency pairs consolidated during the Asian trading session, after heavy profit-taking from recent strong rallies. The dollar made big gains this week on signs of an improving US economy and less likelihood for the Fed to expand quantitative easing. Lack of significant economic data during the Asian session kept activity light.
USDJPY consolidated into a range after profit-taking pushed the pair off eleven-month highs of 84.16. Prices were supported above 83.20.The uptrend in the pair is expected to continue due to weakness in the yen after the Bank of Japan recently expanded its asset purchase program by 10 trillion yen.
EURUSD and most euro cross pairs consolidated during the Asian session with little activity ahead of the weekend. The pullback in the dollar saw the euro bounce off a one-month low of $1.3003 to hover above $ 1.3066. EURCHF was little changed, trading sideways above 1.2064 after a big dip from 1.2146 following the Swiss National Bank announcement on Thursday that it kept the 1.20 franc cap in place.
The Australian dollar managed to rebound off a one-month low with the help of a softer greenback. AUDUSD moved up from 1.0422 to move into a range between 1.0508 and 1.0553. AUDJPY hovered near 10-month highs of 88.01 reached on Thursday.
Looking ahead, European trade balance data will be watched, as well as U.S. consumer inflation data due later.