USD/JPY and the JPY complex were better bid in Asia after a volatile overnight session. USD/JPY had traded through 120.00 to 120.25 ahead of ECB Pres Draghi’s press conference. A major reversal was seen post-Draghi with his less dovish-than-expected tack disappointing bears and resulting in wholesale EUR short-covering and USD weakness. USD/JPY hit an outlier low of 119.33 before bouncing back. Asia saw USD/JPY initially dip down to 119.71 before grinding slowly higher to 120.10. Japanese exporters were not as active sellers as yesterday. Although more offers are eyed on the 120-handle, size may not be seen till above 120.25. Japanese importers, investors and offshore funds were good buyers again, albeit holding back a bit ahead of tonight’s US non-farm payrolls release. Stops are eyed above 120.25 and below 119.30 and 119.00. So-so large option expiries are eyed at 119.50, 120.00 and 120.50. EUR/JPY was also better bid, up modestly from 148.32 to 148.55 but still well below yesterday’s 148.95 high and 149.12 on November 20. GBP/JPY dipped to 187.26 before bouncing to 187.92. AUD/JPY and NZD/JPY did little, holding between 100.30-57 and 93.09-29, respectively.
EUR/USD and the EUR complex did little in Asia as has been the recent wont and especially so ahead of the key US non-farm payrolls release tonight. EUR/USD traded a tight 1.2373-93 range, consolidating after the short-covering rally last night after ECB Pres Draghi disappointed bears with a less dovish-than-expected tack, perhaps on German opposition. Large nearby option expiries helped pin the market down with E1.428 bln tipped at 1.2350 and E2.307 bln at 1.2400. EUR/GBP consolidated gains seen yesterday, holding bid between 0.7897-0.7919. Bids look are eyed in the 0.7880-90 window. EUR/CHF, one of the few EUR pairs to fall back yesterday, consolidated overnight losses between 1.2023-26.
GBP/USD sagged in Asia, falling back from 1.5681 to 1.5637 on USD/JPY-led USD strength.
USD/CHF traded quietly between 0.9704-18 in Asia.
AUD/USD opened in Asia at 0.8382 and remained mostly between 0.8376-98 ahead of tonight’s all important US non-farm payrolls data. USD/JPY-led USD strength saw AUD/USD down a small leg in the afternoon to 0.8369. Expectations of RBA ease continued to limit moves up in AUD not only against USD but against the field. Both GBP/AUD and EUR/AUD are at trend highs. Some AUD/USD support is eyed at 0.8315 but a break below here and 0.8300 could very well send it down towards 0.8000 especially if US data proves stronger than expected.
Source:: USD gains ahead of NFP report