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22 Apr 2014
Asia Recap: Mild AUD short covering ahead of Aus CPI
FXStreet (Bali) - Another day of consolidation in Asia, with the most notable move being some light AUD short covering ahead of Wednesday's Q1 CPI in Australia.
AUD/USD opened along the 0.9335/40 resistance line, with bids eventually absorbing offers for a test of 0.9350, with the highest for the session being set at 0.9358. Note the pair broke a bearish trendline coming from April 14.
USD/JPY was on the rise during the early going of Tokyo, but failed to extend at the 50% key fibonacci retracement, with heavy supply seen at the 00.50 GMT fix. Bids are now expected to contain the declines at 102.50, with offers reported at 102.70 ahead of 103.00.
Meanwhile, NZD/USD managed to move further away from 0.8550 but offers ahead of 0.86 kept the price well contained ahead of Thursday's RBNZ monetary policy decision, in which another 25bp rate hike is widely expected by market participants.
The rest of G10 currencies were confined in small ranges ahead of the European session. There was talk in Asia about Euro/US Dollar selling interest camped at 1.38 with light stops at 1.3815, 1.3825 and 1.3830, while leveraged accounts seems to be waiting a retest of into 1.3850 to fade further rises.
Main headlines in Asia
RBNZ to hikes rates by 25bp on Thursday - BNZ
Australia CB Leading Indicator: 0.3% (February) vs 0.2%
PBOC sets USD/CNY at 6.1610 vs 6.1590
AUD/USD opened along the 0.9335/40 resistance line, with bids eventually absorbing offers for a test of 0.9350, with the highest for the session being set at 0.9358. Note the pair broke a bearish trendline coming from April 14.
USD/JPY was on the rise during the early going of Tokyo, but failed to extend at the 50% key fibonacci retracement, with heavy supply seen at the 00.50 GMT fix. Bids are now expected to contain the declines at 102.50, with offers reported at 102.70 ahead of 103.00.
Meanwhile, NZD/USD managed to move further away from 0.8550 but offers ahead of 0.86 kept the price well contained ahead of Thursday's RBNZ monetary policy decision, in which another 25bp rate hike is widely expected by market participants.
The rest of G10 currencies were confined in small ranges ahead of the European session. There was talk in Asia about Euro/US Dollar selling interest camped at 1.38 with light stops at 1.3815, 1.3825 and 1.3830, while leveraged accounts seems to be waiting a retest of into 1.3850 to fade further rises.
Main headlines in Asia
RBNZ to hikes rates by 25bp on Thursday - BNZ
Australia CB Leading Indicator: 0.3% (February) vs 0.2%
PBOC sets USD/CNY at 6.1610 vs 6.1590