Forex Asia Review – Euro falls on euro zone debt concerns

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Forex News: Euro rises against Dollar in early Asian sessionThe euro fell sharply in Asian to approach near an eight month low as sentiment was dampened as concerns of a Greek default has gained pace and there is talk international authorities were working on a plan towards a “managed default” for Greece some time around the next G20 meeting in Paris in November. Early in the session the euro was lifted due to reports from the weekend that the EU was coming up with a plan worth at least 2 trillion euros to recapitalize the banks and stem contagion but the rally was short lived. EURUSD opened Asia at 1.3513 and fell to session low of 1.3389.


GBPUSD took direction from the euro and after an initial lift to 1.5491, eventually headed downwards to a1.5431 as risk aversion pushed investors to sell of risk currencies like the British pound.


USDJPY opened Asia at 76.47 and rose to 76.75 before falling to a session low of 76.75 as Asian equity markets declined sharply on damp sentiment as the G20 meetings over the weekend with the IMF failed to restore confidence and concerns grew over the euro zone debt crisis. EURJPY fell to 102.30 from 103.75.


AUDUSD was initially volatile and rallied to as high as 0.9838 from the 0.9808 open as investors reacted to reports that European leaders were discussing bolder measures to try and contain the euro zone debt crisis. But soon these hopes faded and AUDUSD traded down to 0.9711.


NZDUSD fell from a high of 0.7771 to a low of 0.7692 as the Kiwi was hurt by domestic data showing New Zealand recorded its first monthly trade deficit in eight months in August as annual trade surplus narrowed on rising imports.