Forex Asia Review – AUDJPY hits 10-mth high

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Yen weakened sharply against the Australian dollar, with AUDJPY hitting  a ten-month high of 88.01. EURJPY opened the session at 109.02 and scaled up to 109.62. Investors have been selling the yen aggressively since Bank of Japan’s easing in February.

The dollar advanced higher against the yen, still benefitting from the view that the US economy is improving and the Fed will hold back on further quantitative easing. USDJPY has made sharp gains since Tuesday, peaking at 84.16 in the Asian trading session, where it is likely to find strong resistance and most probably consolidate and investors will look to take profits.

The euro fell to a four-week low against the broadly stronger dollar. EURUSD touched lows of 1.3003 before consolidating at around this level.

The Australian dollar hit an eight-week low against the greenback, in reaction to falling regional equity markets after data showing foreign direct investment in China declined for a fourth straight month. Recent concerns about a slowdown in Chinese economy have affected the aussie, whose main export market is China. AUDUSD fell to low of 1.0422.

NZDUSD dipped to its lowest level since January 25, reaching 1.8059 before bouncing to 0.8106.

The Swiss franc remains under pressure ahead of the Swiss National Bank (SNB) policy decision later today.  EURCHF hit a two-month high of 1.2146 on Wednesday, around which it consolidated during Asian trading as investors wait to see if the SNB may lift the floor under  the pair from 1.20 Swiss francs.