AUTOREFRESH 
Asian FX market wrap: BoJ expands credit program
- Not unexpectedy, the BoJ keeps rates at 0.1% and boosts it’s credit program to JPY20 trillion
- USD/JPY dipped after the anouncement in a case of buy the rumour, sell the fact
- RBA assistant governor says rates to rise further
- Way forward for Greece remains unclear as Germany would possibly be unable to ratify any bail-out package of any sort
- Regional stockmarkets gain over 1% on average
It was another brutally boring morning session in Asia with the EUR/USD trading for almost 6 hours in a 10 pip range. The BoJ announcement brought a few fresh flows into the market and this encouraged some small movements.
USD/JPY fell from 90.40 to 90.03 immediately after the announcement in what was a case of buy the rumour, sell the fact. But with 2-year JGB yields now at 4 year lows, USD/JPY and the JPY crosses found some willing dip buyers and USD/JPY has jumped to a new session high at 90.62. Unusually, this pair has been the most volatile during the local session.
AUD/USD jumped above .9200 in early trade as stop-loss buying in NZD/USD led the way but when AUD/NZD sellimng also materialised, the AUD/USD drifted back to its NY closing level. Range: .9174/.9209.
Cable and EUR were both relatively quiet although the GBP has given back some of its overnight gains on the cross. Sovereign sellers are expected in the EUR/USD at 1.3825/50 and this dissuaded local traders from being overly bullish. Ranges: EUR/USD 1.3763/86; Cable 1.5220/60.
Markets: Nikkei +0.75%, HK +1.3%, Kospi +1.1%. Gold +5 to $1128/oz.
Add a comment