Asia Session Recap
Following another immensely volatile New York session, Asia traders began the day awaiting the open of equity indexes. Expecting follow through from the late day rally on Wall Street, the high yielding crosses looked poised to continue their bounce off earlier lows. However, the move higher wasn't as quick as some had expected, nor was it without some bumps in the road.
Equities opened choppy and the carry pairs initially followed suit. After climbing from NY lows in the 160.40s, 170+ pips higher back over the 162.00 handle, the pair began the session consolidating. A weaker open sent EURJPY to test the figure around 162.00 where it dealt mostly sideways through the early morning. But bids would step in for the cross, pushing it 60+ pips through the 162.50 short term resistance level. NZDJPY saw similar action as well, tacking on an additional 50+ pips onto its NY gains to deal close to the 86.00 level.
The greenback slipped a touch today in Asia trading after its explosive rally earlier. EURUSD rose back to the 1.4200 area, where the pair faced fierce resistance. Sellers were successful, and EURUSD dealt below the handle for the session. NZDUSD also enjoyed a rally, catching a late trading bid that sent it 35 pips to the .7510s level.
Looking ahead, most currency traders are expecting continued uncertainty to plague the market. Dramatic moves in either direction have recently become the norm. Forex market observers will have their eyes once again on the high yielding carry pairs ahead in the upcoming London session. Will the crosses continue to rebound? Will dollar selling on spikes recede? We'll get a clearer picture in just a bit!
Upcoming Data Releases (London Session):
EC: 5amET Industrial New Orders (MoM) (Prior: -4% // Est.: .9%)
(YoY) (Prior: 10.9% // Est.: 6%) Relevance - Low
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