Forex Asia Review – EURUSD drops to one-month low

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The euro slipped further against the dollar to a one-month low, as risk was off in the Asian trading session. Euro zone sovereign debt crisis and focus on rising Spanish bond yields weighed on the single currency. On Friday Spanish government bond yields hit an all-time high, raising fears about the nation’s finances. EURUSD opened in Asia at 1.3065 and dropped to a low of 1.3008.

Euro also fell against the yen and the British pound. EURJPY touched a low of 104.80, the lowest since February 20. EURGBP fell to 0.8219, the lowest since January 9.

USDJPY opened in Asia at 80.83 and dipped sharply to a seven-week low of 80.44. With risk aversion back in the markets, the safe haven yen was in demand.

AUDUSD fell 60 pips to 1.0310. Commodity-linked currencies were under pressure by damp risk appetite. The aussie began declining last Friday on fears of slowing growth in China, after disappointing GDP data. China is Australia’s major trading partner.

USDCHF rose to a one-month high 0.9241, helped by a broadly stronger dollar.

A stronger US dollar weighed on gold prices since the two have an inverse relationship. Gold priced in USD fell to a low of $1,644.26, falling $35 since Thursday.