JPY firm on Chinese market jitters, USD consolidates ahead of FOMC

USD/JPY stablized in Asia, after sliding to as low as 123.62. Last week the pair surged to a six-week high of 124.48. The dollar fell sharply on Monday despite decent US durable goods orders. The safe-haven yen was in demand as investors remained cautious ahead of a two-day U.S. Federal Reserve meeting beginning today. Risk sentiment was off due to the sell-off in the Chinese stock markets.

EUR/JPY remained between 136.51-83 and GBP/JPY between 191.40-192.33.

EUR/USD opened in Asia at 1.1088, with across the board euro strength overnight. There was a brief drop to 1.1099 early before rebounding again to 1.1075. Technical resistance is seen at 1.1120-30. Last week the euro gained about 1.4 percent. Monday’s upbeat German IFO sentiment data helped lift the euro. EUR/USD is expected to consolidate ahead of the FOMC conclusion.

GBP/USD traded to and fro in a tight 1.5556-70 range Focus will shift to UK GDP data later today.
EUR/GBP was somewhat heavy, trading 0.7116-29, below Monday’s 0.7160 spike high.

USD/CHF sees nervous trade between 0.9605-26. EUR/CHF makes small tracks away from Monday’s 1.0690 high, trading in Asia between 1.0678-53.

AUD/USD opened in Asia at 0.7269 and see-sawed between 0.7257-0.7311. The market was choppy due to the highly volatile Shanghai Composite. China is a major trading partner for Australia, so there is a strong correlation. AUD had initial weakness followed by a rally alongside Chinese stocks. Support seen at at 0.7250-60.

NZD/USD was off from 0.6648 to 0.6623 early in the session before bouncing later to 0.6650. AUD/NZD slipped from 1.1013 to 1.0953, a 6-week low.

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Source:: JPY firm on Chinese market jitters, USD consolidates ahead of FOMC

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