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20 Mar 2014
Asia Recap: Traders take no chances after hawkish Fed
FXStreet (Bali) - It was a quiet Asian session, with the wild swings seen post FOMC leading to calm waters as traders in Asia digested news of a hawkish Fed, the catalyst causing the US Dollar to top the climbers on Wednesday.
AUD/USD opened on Thursday at 0.9040, confined in a relatively small range of 0.9002-.9042, with the topside never coming under threat as the differential between Australia and US rates tightens following Wednesday's intervention by Fed's Yellen, who 'hinted' over the possibility of rate hikes in Q2 2015. The pair was heavy right from the get-go after a higher fixing in USD/CNY, which led to an increase in the value of USD/CNH above 6.20, and the AUD/USD sank further towards the 0.90 cents figure before recovering, as the market awaits how London traders react to what seems to have been an overdone move post FOMC.
The USD/JPY was well underpinned by the 102.20/25 vicinity, keeping a tight 102.20-45 range, with pressure down on the Nikkei 225 (-0.70% as of now) failing to encourage much selling but nevertheless capping further progress. With regards to the New Zealand Dollar, the pair traded top heavy from the start, with some decent selling seen after the NZ Q4 GDP release, which came very much in line with estimates. NZD/USD sits now at 0.8520 support. The rest of currencies part of the G10 group traded in a slow rhythm awaiting Europe.
Main headlines in Asia
Fed continues to taper QE program, updates forward guidance
New Zealand GDP Q4 2013 in line with expectations
Fed rates re-pricing hints USD a buy on dips
USD/CNH breaks above 6.20 post weaker Yuan fix
Chinese Premier Li sends an easing signal - Nomura
AUD/USD opened on Thursday at 0.9040, confined in a relatively small range of 0.9002-.9042, with the topside never coming under threat as the differential between Australia and US rates tightens following Wednesday's intervention by Fed's Yellen, who 'hinted' over the possibility of rate hikes in Q2 2015. The pair was heavy right from the get-go after a higher fixing in USD/CNY, which led to an increase in the value of USD/CNH above 6.20, and the AUD/USD sank further towards the 0.90 cents figure before recovering, as the market awaits how London traders react to what seems to have been an overdone move post FOMC.
The USD/JPY was well underpinned by the 102.20/25 vicinity, keeping a tight 102.20-45 range, with pressure down on the Nikkei 225 (-0.70% as of now) failing to encourage much selling but nevertheless capping further progress. With regards to the New Zealand Dollar, the pair traded top heavy from the start, with some decent selling seen after the NZ Q4 GDP release, which came very much in line with estimates. NZD/USD sits now at 0.8520 support. The rest of currencies part of the G10 group traded in a slow rhythm awaiting Europe.
Main headlines in Asia
Fed continues to taper QE program, updates forward guidance
New Zealand GDP Q4 2013 in line with expectations
Fed rates re-pricing hints USD a buy on dips
USD/CNH breaks above 6.20 post weaker Yuan fix
Chinese Premier Li sends an easing signal - Nomura