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USD/JPY back below 119.00 after nonfarm payrolls
Posted On 12 Jan 2015
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USD/JPY opened the Asian session at 118.52 after falling during the US session on Friday when US yields moved lower in response to the weak average hourly earnings component of the US NFPs. USD/JPY weakness continued in early Asia – with the paring trading down to 118.12 at one stage before standing Japanese buy orders ahead of 118.00 discouraged attempts lower. The move was in line with broad USD weakness, as the reaction to the US employment report continued to resonate in early trading. The USD found its feet again later in the morning and USD/JPY drifted all the way back to 108.51 before heading to 118.40.
EUR/USD opened the Asian session at 1.1845 after getting support on Friday from a move lower in US yields following the disappointing fall in the average hourly wage component of the US NFPs. EUR/USD traded to 1.1835 in early Asia before broad USD weakness set in. Small stops were triggered above 1.1855 to 1.1870 before sellers returned and the USD found its feet again. EUR/USD drifted back to 1.1855 heading into the afternoon session. EUR/USD is unlikely to make too much ground ahead of the ECB meeting Jan 22 and the Greek elections three days later. The Syriza Party remains ahead in the opinion polls and the political uncertainty and ramifications of a Syriza win should continue to cap EUR/USD rallies.
GBP/USD on Monday traded a 1.5165-95 range in Asia; last at 1.5167.
USD/CHF on Monday traded a 1.0118-41 range in Asia; last at 1.0135.
AUD/USD opened on Monday at 0.8209 and traded a modest 0.8201-52 range in Asia; last at 0.8250. The pair hovered just above the figure in quiet early dealing but once things got fully up and running we saw a continuation of broad US Dollar weakness from Friday night. The mixed payroll data out of the US Friday has prompted a broad but modest paring of long US Dollar positions. AUD has been the major beneficiary with AUD/USD showing resilience today prompting a further move into the 0.8250′s.
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