Asia has been pretty consistent this week; it wants to buy the USD and once again its ignoring the overnight lead and doing its own thing. After briefly dipping to 1102, USD/KRW is now back up at 1112 and that is giving the USD a ‘bid tone’ across the board. AUD/USD has fallen 40 pips back below 1.0300 and EUR/USD has also fallen 25 pips.
The move into Asian assets by overseas investors happened over a long period of time and with nerves now somewhat frayed, it will take them a few weeks to get out of those markets as well.
