20 Feb 2015
Asia Recap: G10 FX flattens, Greek debt talks eyed
FXStreet (Bali) - It as been a low key affair in Asia, with G10 FX consolidating amid thin liquidity - most financial centers on holidays due to Chinese new year - and the inconclusive Greed debt negotiations.
AUD/USD continues to struggle to break past intraday resistance at 0.7810, although buyers continue pressing against the level, finding a certain degree of comfortability to keep the rate elevated, trying to recover Thursday's losses, driven by misleading headlines that Australia may risk a credit downgrade by S&P rating agency, which later confirmed that its view on the country had not be altered in recent months. NZD/USD, meanwhile, saw subdued trade, capped by 0.7540.
USD/JPY remains in a tight range between 119.10 and 118.80, the latter being a key intraday support to keep the constructive bullish bias near term. Nikkei hitting a new 15-yr high and US 10 Treasury yields, up at 2.11 at the NY close, continue to provide a solid background that justifies the potential for higher prices. On the flip side, the longer it takes for Greece and the EU to reach a new funding deal, the more risk averse the market may turn, potentially causing an unwind of Yen shorts.
Heading into the European session, manufacturing PMIs out of the Eurozone, together with the UK retail sales, will be the main focus during morning hours, While in the afternoon, the interst will be fully centered around the EU FinMin meeting in Brussels, with the market still hoping that Thursday's rejected letter by Greek FinMin on a loan extension request could serve as a platform for further discussions to take place. In Asia, EUR and GBP kept familiar levels, with the latter still looking an attractive buy given this week's fundamental developments on the UK labour market - specs may be wishing a UK retail sales miss in order to potentially add longs at better levels -.
Key headlines in Asia
BoE'S Ian McCafferty: Rates could 'potentially' turn negative
Greek FinMin: Greece will reject more austerity
ECB accounts a useful addition to watching toolkit - Nomura
Will Greece reach an agreement with the EU? - Deutsche Bank
Fed's Bullard: Concerned markets view Fed falling behind curve on hikes
New Zealand 6-mont financial statement: Budget deficit narrower
AUD/USD continues to struggle to break past intraday resistance at 0.7810, although buyers continue pressing against the level, finding a certain degree of comfortability to keep the rate elevated, trying to recover Thursday's losses, driven by misleading headlines that Australia may risk a credit downgrade by S&P rating agency, which later confirmed that its view on the country had not be altered in recent months. NZD/USD, meanwhile, saw subdued trade, capped by 0.7540.
USD/JPY remains in a tight range between 119.10 and 118.80, the latter being a key intraday support to keep the constructive bullish bias near term. Nikkei hitting a new 15-yr high and US 10 Treasury yields, up at 2.11 at the NY close, continue to provide a solid background that justifies the potential for higher prices. On the flip side, the longer it takes for Greece and the EU to reach a new funding deal, the more risk averse the market may turn, potentially causing an unwind of Yen shorts.
Heading into the European session, manufacturing PMIs out of the Eurozone, together with the UK retail sales, will be the main focus during morning hours, While in the afternoon, the interst will be fully centered around the EU FinMin meeting in Brussels, with the market still hoping that Thursday's rejected letter by Greek FinMin on a loan extension request could serve as a platform for further discussions to take place. In Asia, EUR and GBP kept familiar levels, with the latter still looking an attractive buy given this week's fundamental developments on the UK labour market - specs may be wishing a UK retail sales miss in order to potentially add longs at better levels -.
Key headlines in Asia
BoE'S Ian McCafferty: Rates could 'potentially' turn negative
Greek FinMin: Greece will reject more austerity
ECB accounts a useful addition to watching toolkit - Nomura
Will Greece reach an agreement with the EU? - Deutsche Bank
Fed's Bullard: Concerned markets view Fed falling behind curve on hikes
New Zealand 6-mont financial statement: Budget deficit narrower