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4 Feb 2015
Asia Recap: Kiwi on the rise inspired by NZ jobs, RBNZ
FXStreet (Bali) - The Kiwi was the out-performer in Asia, following a solid NZ employment report but mainly due to RBNZ Governor Wheeler delivering a 'not as dovish as expected' speech. The Japanese Yen was again the weakest currency.
NZD/USD was the main mover in Asia, building up on Tuesday's gains coming via a sizeable USD short-squeeze across the board. Today, the pair hit its highest for the session at 0.7420, having had a startling recovery off 0.7288 low, in response to RBNZ Governor Wheeler speech, noting that a period of stability in rates was the most prudent course of action for now; The market is now anticipating that the RBNZ is likely to remain on hold for the foreseeable future rather than cutting rates.
AUD/USD traded heavy in early Asia, although sellers only managed to take the rate as low as 0.7755 (daily pivot) before strong buying in NZD/USD fed through the Aussie, allowing the pair to re-challenge pre-RBA rate cut levels above 0.78. The Shnaghai Securities agency reported that Chinese provinces are planning over $2.4 trillion in infrastructure investment to stimulate the economy, starting in 2015, a positive input for the Australian Dollar as the market may start to anticipate a potential recovery in iron ore demand, a key component of the Australian economy.
USD/JPY extended gains up until 118.00 , where strong offers via exporters/option-related, capped the bull progress, pulling the rate down over 20 pips. The Nikke 225 tracked the positive performance in the S&P500, up almost 2% into the close. The technical picture remains inconclusive, with well-defined ranges still dominant ahead of the US Non-Farm Payroll reports on Friday. BoJ Kuroda and DepGov Iwata appeared in a parliamentarian session, with headlines having no impact in the Yen.
Main headlines
NZ jobs: Another solid number, unemployment rate up
Fonterra GlobalDairyTrade registers a 9.4% increase - ANZ
Conditions in the Australian services industries stabilise in January
RBNZ Wheeler: Period of cash rate stability most prudent option
RBNZ Wheeler speech: Not as dovish as expected
RBNZ Wheeler: Can't rule out rate cut, prudent to hold for now
United Kingdom BRC Shop Price Index (MoM) increased to -0.5% in January from previous -1.7%
Japan Labor Cash Earnings (YoY) climbed from previous -1.5% to 1.6% in December
Japan Services PMI: Activity growth sustained at moderate pace
BoJ's Iwata: Shift from deflationary mindset may be delayed
Growth in the Chinese services sector eases in January
Chinese provinces plan $2.4 trillion in investment
NZD/USD was the main mover in Asia, building up on Tuesday's gains coming via a sizeable USD short-squeeze across the board. Today, the pair hit its highest for the session at 0.7420, having had a startling recovery off 0.7288 low, in response to RBNZ Governor Wheeler speech, noting that a period of stability in rates was the most prudent course of action for now; The market is now anticipating that the RBNZ is likely to remain on hold for the foreseeable future rather than cutting rates.
AUD/USD traded heavy in early Asia, although sellers only managed to take the rate as low as 0.7755 (daily pivot) before strong buying in NZD/USD fed through the Aussie, allowing the pair to re-challenge pre-RBA rate cut levels above 0.78. The Shnaghai Securities agency reported that Chinese provinces are planning over $2.4 trillion in infrastructure investment to stimulate the economy, starting in 2015, a positive input for the Australian Dollar as the market may start to anticipate a potential recovery in iron ore demand, a key component of the Australian economy.
USD/JPY extended gains up until 118.00 , where strong offers via exporters/option-related, capped the bull progress, pulling the rate down over 20 pips. The Nikke 225 tracked the positive performance in the S&P500, up almost 2% into the close. The technical picture remains inconclusive, with well-defined ranges still dominant ahead of the US Non-Farm Payroll reports on Friday. BoJ Kuroda and DepGov Iwata appeared in a parliamentarian session, with headlines having no impact in the Yen.
Main headlines
NZ jobs: Another solid number, unemployment rate up
Fonterra GlobalDairyTrade registers a 9.4% increase - ANZ
Conditions in the Australian services industries stabilise in January
RBNZ Wheeler: Period of cash rate stability most prudent option
RBNZ Wheeler speech: Not as dovish as expected
RBNZ Wheeler: Can't rule out rate cut, prudent to hold for now
United Kingdom BRC Shop Price Index (MoM) increased to -0.5% in January from previous -1.7%
Japan Labor Cash Earnings (YoY) climbed from previous -1.5% to 1.6% in December
Japan Services PMI: Activity growth sustained at moderate pace
BoJ's Iwata: Shift from deflationary mindset may be delayed
Growth in the Chinese services sector eases in January
Chinese provinces plan $2.4 trillion in investment