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16 Oct 2014
Asia Recap: Traders take no chances after mass USD long liquidation
FXStreet (Bali) - Following the selling hysteria in USD, stocks, Treasury yields and Oil, it was smooth sailing along Asian hours, with G10 currency rates barely changed.
AUD/USD saw limited order flow, with the rate unable to hold above 0.88, finding support at the hourly 20-EMA at 0.8785/90 though. USD/JPY was also range-bound, marginally above 106.00, capped by the 20-EMA on the hourly. NZD/USD saw gains limited by 0.80 round number. EUR/USD held onto recent gains, some 20 odd pips above 1.28 after a 1.2880 high in the last US session. GBP/USD remains quite depressed below 1.60, unable to capitalize as much as one would expect from USD weakness, as BoE rate hike expectations get pushed further away into Q2/Q3 2015.
On the fundamental front, the U.S. Treasury Department, in its semiannual report, said that Europe faces the prospects of entering a deflationary cycle, noting that Germany could do better on assisting the region's stagnant economic growth. Among their main conclusions, they also noted that no major US trading partner has manipulated exchange rate. Also out of the US, President Barack Obama said that the likelihood of widespread ebola outbreak in United States is very, very low.
In New Zealand, ANZ job advertisements for September came at +2.4% MoM vs +1.4% last, while Business NZ manufacturing PMI for September stood at 58.1 vs 57.0. In Australia, consumer inflation expectations for October was +3.4% vs +3.5% last, while Australia's RBA FX transactions climbed from previous 381M to 910M in September. In China, foreign direct investment for September came at -1.4% YoY vs -1.8% prior. China new loans, meanwhile, was above expectations (730B) in Sept, at 857.2B.
AUD/USD saw limited order flow, with the rate unable to hold above 0.88, finding support at the hourly 20-EMA at 0.8785/90 though. USD/JPY was also range-bound, marginally above 106.00, capped by the 20-EMA on the hourly. NZD/USD saw gains limited by 0.80 round number. EUR/USD held onto recent gains, some 20 odd pips above 1.28 after a 1.2880 high in the last US session. GBP/USD remains quite depressed below 1.60, unable to capitalize as much as one would expect from USD weakness, as BoE rate hike expectations get pushed further away into Q2/Q3 2015.
On the fundamental front, the U.S. Treasury Department, in its semiannual report, said that Europe faces the prospects of entering a deflationary cycle, noting that Germany could do better on assisting the region's stagnant economic growth. Among their main conclusions, they also noted that no major US trading partner has manipulated exchange rate. Also out of the US, President Barack Obama said that the likelihood of widespread ebola outbreak in United States is very, very low.
In New Zealand, ANZ job advertisements for September came at +2.4% MoM vs +1.4% last, while Business NZ manufacturing PMI for September stood at 58.1 vs 57.0. In Australia, consumer inflation expectations for October was +3.4% vs +3.5% last, while Australia's RBA FX transactions climbed from previous 381M to 910M in September. In China, foreign direct investment for September came at -1.4% YoY vs -1.8% prior. China new loans, meanwhile, was above expectations (730B) in Sept, at 857.2B.