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17 Mar 2014
Asia Recap: Crimea joins Russia, Yuan daily band expands
FXStreet (Bali) - News that Crimea's voters decided to annex from Ukraine to become part of a Russian state were completely shrugged off by the market, with G10 currencies keeping familiar ranges.
AUD/USD traded as low as 0.8890 in early Sydney, however, the dip was quickly reverted by a market still keen to buy the AUD before further drivers define the exchange rate. The rate approaches Europe at session highs just above the 0.9050. On Saturday, the PBoC decision to widen the USD/CNY from 1 to 2% was the early catalyst causing the decline in the AUD, however, the real price mover will not come until Tuesday, when the RBA is due to publish the minutes, and ahead of Wednesday's FOMC. Until mentioned risks events are out of the way, and barring any unexpected geo-political bombshell headline, a fairly tight consolidation with extremes at 0.9070/80 and 0.90 should ensue.
With regards to the USD/JPY, bids scattered around the 101.20/30 kept the rate afloat after suffering sharp losses last week. The Nikkei 225 (-0.14%) didn't play much of a role today on setting the Yen direction. The New Zealand Dollar, meanwhile, remained sidelined holding support at 0.8525, with buyers still resilient in a market reluctant to sell NZD after last week's hawkish message by the RBNZ. The Euro was a touch lower, but the rate fluctuation did not alter the technicals, which continue to favour a bullish, although the near distance with 1.40 coupled with the FOMC risk event and Draghi's reference to the EUR level last week, have resulted in long players being more cautious.
Main headlines in Asia
China widens yuan trading band
Near-term band widening impact on the Yuan - Nomura
Crimea says yes to Russian rule
Gold hits a new 6-month high
US President: Crimea's vote would never be recognized
China needs time to decide reserve ratio cut - China Securities news
Australia New Motor Vehicle Sales (YoY) dipped from previous -3% to -3.5% in February
PBOC sets USD/CNY at 6.1321, risk up
BoJ may have begun to step up guidance for more easing - RBS
AUD/USD traded as low as 0.8890 in early Sydney, however, the dip was quickly reverted by a market still keen to buy the AUD before further drivers define the exchange rate. The rate approaches Europe at session highs just above the 0.9050. On Saturday, the PBoC decision to widen the USD/CNY from 1 to 2% was the early catalyst causing the decline in the AUD, however, the real price mover will not come until Tuesday, when the RBA is due to publish the minutes, and ahead of Wednesday's FOMC. Until mentioned risks events are out of the way, and barring any unexpected geo-political bombshell headline, a fairly tight consolidation with extremes at 0.9070/80 and 0.90 should ensue.
With regards to the USD/JPY, bids scattered around the 101.20/30 kept the rate afloat after suffering sharp losses last week. The Nikkei 225 (-0.14%) didn't play much of a role today on setting the Yen direction. The New Zealand Dollar, meanwhile, remained sidelined holding support at 0.8525, with buyers still resilient in a market reluctant to sell NZD after last week's hawkish message by the RBNZ. The Euro was a touch lower, but the rate fluctuation did not alter the technicals, which continue to favour a bullish, although the near distance with 1.40 coupled with the FOMC risk event and Draghi's reference to the EUR level last week, have resulted in long players being more cautious.
Main headlines in Asia
China widens yuan trading band
Near-term band widening impact on the Yuan - Nomura
Crimea says yes to Russian rule
Gold hits a new 6-month high
US President: Crimea's vote would never be recognized
China needs time to decide reserve ratio cut - China Securities news
Australia New Motor Vehicle Sales (YoY) dipped from previous -3% to -3.5% in February
PBOC sets USD/CNY at 6.1321, risk up
BoJ may have begun to step up guidance for more easing - RBS