Forex Asia Review – Australian dollar rises on risk appetite after Bernanke

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EURUSD opened at 1.4499 after a sharp rise on Friday following Fed Chairman Bernanke’s speech which brought the dollar under light pressure against a basket of major on speculation the Federal Reserve may offer more stimulus next month in the face of an uncertain growth outlook. After a slight dip to 1.4466, EURUSD continued higher to 1.4495.


GBPUSD opened in Asia at 1.6349 and after consolidating gradually drifted higher to 1.6375 to continue to uptrend from Friday following Bernanke’s speech on the U.S. economy which boosted risk sentiment. A bank holiday in the U.K. today will result in light trading volumes.


USDJPY opened Asia at 76.72 and consolidated into a range following a sharp fall in the dollar on Friday due to Bernanke’s speech. Even though he did not signal further quantitative easing, he mentioned the Federal Reserve would extend its September policy meeting to two days to consider its options on how to stimulate the U.S. economy.


AUDUSD climbed throughout the session lifted by gains in stocks across the Asian bourses giving an upbeat sentiment and demand of risk assets which were already in demand following a speech of Fed Chairman Ben Bernanke on Friday. AUSUSD peaked at 1.0632 from the open of 1.0584.


Gold opened Asia at $1,836.77 and peaked at $1,838.02 before dipping to $1,805.82 and steadying off as risk appetite picked up in Asia.