Forex news for Asia trading Friday 12 December 2014

Cable gained a little further on its US-session highs in the early part of the Asian session today, but after just a 15 or so point pull back it settled sideways.

EUR/USD got to a shade over 1.2410 in the early going before it too dipped back (by around 20 points) before settling sideways.

After its overnight gyrations AUD/USD had a more subdued range but did manage some activity. the early movement saw it dip toward 0.8240, talk of China lowering its 2015 GDP target weighing on it. It held around 40, though, and has ground its way back to be slightly above session highs as of writing. It appears the Australian government’s backpedalling on various policies this week will soon apply to deficits, with the Treasurer previewing higher deficits on Monday’s mid-year fiscal review (see bullets, above).

NZD/USD dipped, testing 0.7770 before bouncing back to 0.7800. Talk of Fonterra perhaps seeing reduced milk production next year a negative for the bird.

USD/JPY was active again today ahead of Sunday’s election. Liquidity was notably thinner report interbank desks, which is hardly surprising and which contributed to ease of movement. early lows around 118.60 saw a good-size rally adding 60 points into Tokyo late morning before it topped. It settled 20 points lower then took another dive, to new session lows, in the afternoon.

Still to come:

Japanese election on Sunday! … the important numbers