Forex Asia Review – Yen stronger across the board; aussie extends losses

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Yen gained across the board, lifted by Japanese investors selling dollar against yen and other yen crosses for the close of their financial year on March 31.  USDJPY and most JPY crosses were dragged lower in Asian trading. USDJPY fell to 82.53 from 82.95. EURJPY slid to 109.94 from 110.50. AUDJPY dropped to 85.46 from 86.24.

EURUSD was stuck in a tight 1.3306-31 range, mostly flat since Monday following the “Bernanke dollar-weakening effect.”  Other EUR crosses were also flat. EURGBP hovered between 0.8372 – 84 and EURCHF was little changed around 1.2049-56.  The focus is on the EU finance ministers meeting (Ecofin) on Friday.

GBPUSD retraced from a sharp decline on Tuesday, slightly better bid in Asian trading hours, edging up from 1.5886 to 1.5909.

USDCHF traded a tight 0.9041-56 range with little change since the sharp drop on Monday when dollar was slammed across the board following Bernanke’s speech that fuelled speculation for more quantitative easing by the Fed.

Aussie underperformed across the board with sales noted against  dollar and yen. Lower commodity prices and concerns about a hard economic landing in the country, which is Australia’s largest export market, pressured the AUD. Falling regional stock markets in most of Asia weighed on market sentiment. AUDUSD fell to 1.0339 from a high of 1.0403, flirting with a two-month low that was hit a week ago.