The forex trading headlines for Asia trading today: Wednesday 16 October, 2013
US Debt drama – currencies bounced around as headlines hit the wires:
- Fitch ratings placed the USA on a negative watch and more detail here
- House Republicans did not allow a vote in the afternoon/evening – more here and here
- US Senate leaders then resumed negotiations, said they could announce a deal, then adjourned for the evening with no announcement
Meanwhile, in news from outside the asylum:
- New Zealand CPI for Q3 2013: +0.9% q/q (expected +0.8%)
- Australia – Westpac leading index for August: -0.1% m/m – “momentum flagging”
- Merkel and Greens decide not to pursue any further talks on forming a coalition
- Fed’s Fisher on the wires again – Says Fed has done its part through stable monetary policy
It was another session of currency moves in response to US debt/shutdown headlines crossing the wires. USD/JPY found support ahead of 98.00 when it sold off on headlines, and found sellers around 98.55/60 on headline-fuelled rallies.
GBP and Euro had softer sessions, losing a little ground on overnight hights, but ranges were tiny – the action was in the yen and other Asian currencies.
AUD followed the headlines, too, finding buyers around 0.9500 and sellers again ahead of 0.9550. NZD.USD moved in a similar pattern to AUD – with buyers 0.8375 and sellers above 0.8405.
