6 Apr 2015
Thin trades extend in Asia, US non-manufacturing PMIs – Next in focus
FXStreet (Mumbai) - The Australian dollar remained the weakest amid extremely thin trading in Asia as Oz economies extended its Easter holiday on Monday. While USD/JPY witnessed a modest recovery post the US NFP-induced slump.
Key headlines in Asia
Extreme thin FX volumes expected until US hours
RBA policy decision, FOMC minutes key focus
US Dollar net longs bounced off their peak - Nomura
Gold hits fresh 3-week highs above USD 1217
Dominating themes in Asia - centered on JPY, AUD, NZD
With low liquidity in Asia and subdued Asian equities, markets witnessed a mild recovery in the US dollar against its major counterparts after weak US jobs data on Friday dragged the DXY to fresh weekly lows.
The Aussie kept losses above 0.76 handle as markets remained cautious ahead of Reserve Bank of Australia’s (RBA) policy decision due tomorrow. NZD/USD remained dead flat amid lack of fresh triggers for rest of the day while USD/JPY defends mild gains and hovers above 119 barrier.
Heading into Europe - centered on EUR, GBP
There is nothing much to report in the European session as UK and major Euro markets remain closed on extended Easter holiday.
The Spanish Unemployment Change figures are not expected to have major impact, hence, the EUR, GPB traders are expected to focus on the US session for ISM non-manufacturing PMI, Final services PMI and Labor Market Conditions report for some fx volatility.
Valeria Bednarik, Chief Analyst at FXStreet, notes that with Easter holiday extending into Monday - extreme thin volumes should be expected until US hours.
"It won't be until Tuesday's Asian opening that the markets will resume their full activity, after the US employment data.”
For further insights for EUR traders, ANZ research team notes, "Leveraged funds decreased their overall net long USD positioning for the first time in 3 weeks, by USD5.2bn to USD35.2bn. The reduction in positioning was the highest since end-January."
"Net short positioning in the EUR reduced to USD22.0bn from USD23.9 previously. This was despite EUR/USD declining from 1.09 to 1.07 in the week."
"Among the currencies that saw net buying, GBP stood out as the currency that registered the smallest amount of buying at USD0.1bn."
Key headlines in Asia
Extreme thin FX volumes expected until US hours
RBA policy decision, FOMC minutes key focus
US Dollar net longs bounced off their peak - Nomura
Gold hits fresh 3-week highs above USD 1217
Dominating themes in Asia - centered on JPY, AUD, NZD
With low liquidity in Asia and subdued Asian equities, markets witnessed a mild recovery in the US dollar against its major counterparts after weak US jobs data on Friday dragged the DXY to fresh weekly lows.
The Aussie kept losses above 0.76 handle as markets remained cautious ahead of Reserve Bank of Australia’s (RBA) policy decision due tomorrow. NZD/USD remained dead flat amid lack of fresh triggers for rest of the day while USD/JPY defends mild gains and hovers above 119 barrier.
Heading into Europe - centered on EUR, GBP
There is nothing much to report in the European session as UK and major Euro markets remain closed on extended Easter holiday.
The Spanish Unemployment Change figures are not expected to have major impact, hence, the EUR, GPB traders are expected to focus on the US session for ISM non-manufacturing PMI, Final services PMI and Labor Market Conditions report for some fx volatility.
Valeria Bednarik, Chief Analyst at FXStreet, notes that with Easter holiday extending into Monday - extreme thin volumes should be expected until US hours.
"It won't be until Tuesday's Asian opening that the markets will resume their full activity, after the US employment data.”
For further insights for EUR traders, ANZ research team notes, "Leveraged funds decreased their overall net long USD positioning for the first time in 3 weeks, by USD5.2bn to USD35.2bn. The reduction in positioning was the highest since end-January."
"Net short positioning in the EUR reduced to USD22.0bn from USD23.9 previously. This was despite EUR/USD declining from 1.09 to 1.07 in the week."
"Among the currencies that saw net buying, GBP stood out as the currency that registered the smallest amount of buying at USD0.1bn."