Stocks dropped across Asia in the wake of today’s first session, as the EURUSD pair opened up at a 3 week low of 1.4161 and dropped as low as 1.4135 in mid-Asian session. The recent disappointing US jobs data as well as leveled off doubt over the Euro zone debt crisis saw traders taking short positions on riskier assets. The EURUSD pair traded for most of the Asian session between 1.4170 and 1.4135, as the pair is currently on a downward trend as seen from the hourly chart, with support seen around the 1.4100 level.
The recent events in the US have seen concerns within traders; this together with the resurfacing of the European debt woes have seen investors take their money out of risky currencies and take comfort in low yielding currencies.
There were limited news today coming out of Australia, which showed that the second quarter Company Gross Operating Profits came out much higher than expected at 6.7% above the expected value of 3.1% – the positive outcome did see a boost in the AUDUSD, lifting it from haven traded around 1.0575 to rise and trade as high as 1.0595.