The forex trading headlines for Asia Friday 03 January 2014
- The only economic data point in Asia today was the China non-manufacturing (services) PMI for December: 54.6 (vs. 56.0 prior) and more here
- Global manufacturing PMIs – heatmap
- Soros: Efforts to revive growth … are having a beneficial effect worldwide… with the exception of the eurozone
- JP Morgan’s ultimate guide to the markets and the economy
- German press: EU’s Reding and Rehn see economic recovery in Europe
AUD, NZD and yen the stars today as illiquid holiday mode continues to drive movement.
Yen crosses were stable in early going but the arrival of Singapore and Hong Kong dealers into the mix started a fresh bout of yen buying, with USD/JPY stops below 104.50 and 104.35 fuelling the move lower. While Tokyo remained closed Nikkei futures copped a pounding again, helping the yen along its merry way. While CHF and EUR were marginally weaker they both lost substantial ground against the yen. GBP was the weakest of the Europeans, but even cable did not have a big move … it was against the yen where the losses were suffered.
AUD and NZD took to shorts with cricket bats, beating them up and driving through sellers to around 0.8230 in the kiwi and through 0.8950 to the three-quarter level in the AUD. Thin liquidity has a way of exacerbating moves, and it didn’t take much corporate buying (thouhg persistent) to send the two highre. AUD and NZD crosses put in a strong performance (AUD buying against GBP and EUR noted). AUD/NZD higher on the session.
