The euro fell against the dollar after opening the Asian session at 1.4440. EURUSD declined to touch a low of 1.4387 ahead of economic data due today on euro zone industrial orders which has been predicted to fall. Also a separate report is due from the Ifo institute in Germany which has forecast its business climate index, a measure of German business confidence, to fall. The data may damp investor confidence which is already weak on concerns aver the European debt crisis.
GBPUSD opened in Asia at 1.6491 and traded flat most of the Asian session, with lows of 1.6475 and highs of 1.6501. Investors are anticipating important U.K. economic data due tomorrow on sales and on Friday, the second release of GDP data, which will give an indication of growth in the British economy, which has been sluggish recently.
USDJPY opened Asia at 76.63 and rose to a high of 76.86 but soon fell against to as low as 76.53. The yen was only briefly hurt by Moody’s downgrade of Japan’s debt rating to Aa3. Investors sold off the dollar against yen as they were disappointed that Japanese Finance Minister Yoshihido Noda did not announce better measures to curb yen strength but instead merely introduced a $100 billion credit line as aid to Japanese companies to cope with yen strength, a measure that will not deal directly with the issue of currency strength and will not be able to support dollar/yen.
The Australian dollar fell back down against the U.S. dollar after making gains yesterday following better than expected Chinese PMI data. As Asian stocks rallied and turned weaker, this weighed down on sentiment and the aussie as investors continue to be concerned about U.S. and European economic recovery and are waiting to see what the Fed has to say about further stimulus in a meeting on Friday in Jackson Hole. AUDUSD fell from 1.0530 to 1.0463.
Gold rebounded from the low $1,821.92 to a session high of $1,853.92. The safe have asset had reached a record high yesterday after being pushed up by investor concerns on global growth.