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22 May 2014
Recap: Aussie, Aussie, Aussie, up, up, up
FXStreet (Bali) - The Australian Dollar was the top performer in Asia, with the Japanese Yen ending as the main laggard as risk appetite made a comeback.
The strong HSBC PMI in China set into motion both the Australian Dollar and equities in Asia, with a soaring Nikkei, up over 2%, a clear reflection of the ebullient sentiment after China's most subdued PMI version, that is the HSBC series and not the government one, outstripped expectations by rising to 49.7 - bordering expansion levels - vs 48.1 exp, which means a 5-month high for the indicator.
AUD/USD was pressured in the early part of the Asian session, found a low of 0.9216 before skyrocketing to a session high of 0.9270 with sellers disappearing ahead of Europe, session where stops above the 0.9270 handle will most likely be targeted as the case for a bullish continuation on the back of a daily hammer print strengthens.
USD/JPY, after failing to break below key support at 100.80 on Wednesday, managed to expand its vertical bounce by breaking above 101.60 and setting a new high since May 14 at 101.73, with plenty of stops reported above. A bullish Nikkei 225 coupled with the recovery in 10-yr bond yields, and option players involvement to keep trading within familiar levels, all resulted in more range trading for now.
EUR/USD found resistance at 1.3685/90 before edging lower towards 1.3670 - session low - , while GBP/USD was rejected off 1.69 to establish the price at 1.6885. NZD/UD followed Aussie's steps and ended the session near highs at 0.8580.
Main headlines in Asia
Japan Foreign investment in Japan stocks increased to ¥-97B in May 16 from previous ¥-153.9B
Japan Foreign bond investment: ¥1414.3B (May 16) vs ¥345.7B
Australian consumer inflation expectations rose in May
China: HSBC Manufacturing PMI rockets to 5-month high
RBNZ Inflation Expectations (YoY) climbed from previous 2.3% to 2.4% in 2Q
The strong HSBC PMI in China set into motion both the Australian Dollar and equities in Asia, with a soaring Nikkei, up over 2%, a clear reflection of the ebullient sentiment after China's most subdued PMI version, that is the HSBC series and not the government one, outstripped expectations by rising to 49.7 - bordering expansion levels - vs 48.1 exp, which means a 5-month high for the indicator.
AUD/USD was pressured in the early part of the Asian session, found a low of 0.9216 before skyrocketing to a session high of 0.9270 with sellers disappearing ahead of Europe, session where stops above the 0.9270 handle will most likely be targeted as the case for a bullish continuation on the back of a daily hammer print strengthens.
USD/JPY, after failing to break below key support at 100.80 on Wednesday, managed to expand its vertical bounce by breaking above 101.60 and setting a new high since May 14 at 101.73, with plenty of stops reported above. A bullish Nikkei 225 coupled with the recovery in 10-yr bond yields, and option players involvement to keep trading within familiar levels, all resulted in more range trading for now.
EUR/USD found resistance at 1.3685/90 before edging lower towards 1.3670 - session low - , while GBP/USD was rejected off 1.69 to establish the price at 1.6885. NZD/UD followed Aussie's steps and ended the session near highs at 0.8580.
Main headlines in Asia
Japan Foreign investment in Japan stocks increased to ¥-97B in May 16 from previous ¥-153.9B
Japan Foreign bond investment: ¥1414.3B (May 16) vs ¥345.7B
Australian consumer inflation expectations rose in May
China: HSBC Manufacturing PMI rockets to 5-month high
RBNZ Inflation Expectations (YoY) climbed from previous 2.3% to 2.4% in 2Q