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28 Mar 2014
Asia Recap: AUD and NZD continue on fire
FXStreet (Bali) - The Aussie and Kiwi were the leaders of the board again, printing decent gains only to be given partially back in afternoon trading as traders square up positions ahead of the weekend.
AUD/USD was elevated sharply from 0.9255 towards a new 2014 high of 0.9295 at the Tokyo open, with sellers circa 0.93 protecting positions temporarily. Note the level coincides with an upper trendline channel. Exporters were initially forced buyers along with real money, carry trades, continuing to exploit the upside in the Aussie, which sees the next key resistance at 0.9330, 61.85 fib retrac from the Oct-Jan decline. Exhaustion by buyers was not surprising after more than 2 cents of gains this week alone.
With regards to the Kiwi, it showed some sign of fatigue after a relentless run that took price knocking on the 0.87 door. Profit taking ahead of the weekend was mainly to blame, with the pair's retreat stabilizing around 0.8675.Fundamentally, The Reserve Bank of New Zealand published revised rules that exempt construction loans from the Loan-to-Value Ratio (LVR) ‘speed limit’ introduced last October.
The rest of currencies, including the Japanese Yen, were confined in small ranges ahead of Europe. On the wires, Fed's Evans was quoted quite actively, saying rate hikes are not expected in the US until 'well into' 2015. The comments were largely ignored by Asian traders.
Main headlines in Asia
Chinese property sector is top risk to the economy - Nomura
Japan's Inflation Numbers Positive
China Premier: To repeat 2013 mini stimulus, housing and railway eyed
Fed's Evans sees no rate hike until 'well into' 2015
Japan's Abe: Rethinking GPIF portfolio part of investment improvement
AUD/USD was elevated sharply from 0.9255 towards a new 2014 high of 0.9295 at the Tokyo open, with sellers circa 0.93 protecting positions temporarily. Note the level coincides with an upper trendline channel. Exporters were initially forced buyers along with real money, carry trades, continuing to exploit the upside in the Aussie, which sees the next key resistance at 0.9330, 61.85 fib retrac from the Oct-Jan decline. Exhaustion by buyers was not surprising after more than 2 cents of gains this week alone.
With regards to the Kiwi, it showed some sign of fatigue after a relentless run that took price knocking on the 0.87 door. Profit taking ahead of the weekend was mainly to blame, with the pair's retreat stabilizing around 0.8675.Fundamentally, The Reserve Bank of New Zealand published revised rules that exempt construction loans from the Loan-to-Value Ratio (LVR) ‘speed limit’ introduced last October.
The rest of currencies, including the Japanese Yen, were confined in small ranges ahead of Europe. On the wires, Fed's Evans was quoted quite actively, saying rate hikes are not expected in the US until 'well into' 2015. The comments were largely ignored by Asian traders.
Main headlines in Asia
Chinese property sector is top risk to the economy - Nomura
Japan's Inflation Numbers Positive
China Premier: To repeat 2013 mini stimulus, housing and railway eyed
Fed's Evans sees no rate hike until 'well into' 2015
Japan's Abe: Rethinking GPIF portfolio part of investment improvement