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17 Apr 2014
Asia Recap: Sterling prints new multi-year high
FXStreet (Bali) - The Yen traded on a firmer tone in Asia, and so did the British Pound, while the Australian Dollar also showed early strength, only to give back the majority of its gains by mid Asian session, as liquidity thins out ahead of the Easter holidays.
USD/JPY displayed a downward trajectory right from the get-go, retracing from 102.35 session high (reached in the last US session) to first break minor support at 102.15 followed by clearance off 102.00 round number, allowing a further setback until 101.86 (session low) before the price settled right underneath the 102.00 market ahead of Europe. The heavy tone in the Nikkei 225, reversing early gains to end circa -0.3%, weighed on JPY crosses.
AUD/USD opened at 0.9367, first testing support at 0.9360/65 before strong inflows produced a decent 30 pips bounce into supply at 0.9385/90, where sellers fought back to send the rate into no man's land at 0.9370/75, confined between the two nearest layers of support/resistance on thin afternoon markets. NAB released its Q1 business confidence indicator, coming at 6 vs 8 in Q4 2013.
GBP/USD saw a major breakout of 1.6820 resistance, taking out some reported stops above the technical area, and extending to the upside until 1.6837. There was no particular trigger on the rise other than stop-hunt practices on the side that continues to prove the least resistant, especially after the upbeat UK jobs numbers released on Wednesday, with the unemployment rate falling below 7% for the first time in 5 years.
EUR/USD also traded in a bullish tone, building up on recent gains after finding solid support at the 1.38 area following the false break of that area on April 15. While the week started with EUR bearishness on the back of a more aggressive language by ECB President Mario Draghi on the undesirable EUR levels, buyers appear determined to challenge back any verbal intervention from the central bank, in a clear message that words may not be enough.
Main headlines in Asia
Two Japanese government headlines support USD/JPY - Nomura
China to unveil further policy measure to stimulate growth
NAB quarterly business confidence deterioates
USD/JPY displayed a downward trajectory right from the get-go, retracing from 102.35 session high (reached in the last US session) to first break minor support at 102.15 followed by clearance off 102.00 round number, allowing a further setback until 101.86 (session low) before the price settled right underneath the 102.00 market ahead of Europe. The heavy tone in the Nikkei 225, reversing early gains to end circa -0.3%, weighed on JPY crosses.
AUD/USD opened at 0.9367, first testing support at 0.9360/65 before strong inflows produced a decent 30 pips bounce into supply at 0.9385/90, where sellers fought back to send the rate into no man's land at 0.9370/75, confined between the two nearest layers of support/resistance on thin afternoon markets. NAB released its Q1 business confidence indicator, coming at 6 vs 8 in Q4 2013.
GBP/USD saw a major breakout of 1.6820 resistance, taking out some reported stops above the technical area, and extending to the upside until 1.6837. There was no particular trigger on the rise other than stop-hunt practices on the side that continues to prove the least resistant, especially after the upbeat UK jobs numbers released on Wednesday, with the unemployment rate falling below 7% for the first time in 5 years.
EUR/USD also traded in a bullish tone, building up on recent gains after finding solid support at the 1.38 area following the false break of that area on April 15. While the week started with EUR bearishness on the back of a more aggressive language by ECB President Mario Draghi on the undesirable EUR levels, buyers appear determined to challenge back any verbal intervention from the central bank, in a clear message that words may not be enough.
Main headlines in Asia
Two Japanese government headlines support USD/JPY - Nomura
China to unveil further policy measure to stimulate growth
NAB quarterly business confidence deterioates