4 Dec 2013
Asia Recap: Aussie succumbs after soft Aus GDP
FXstreet.com (Bali) - The Australian Dollar was prompted by heavy selling on the back of softer-than-expected GDP data in Australia, sending the rate against the US Dollar to a new trend low sub 0.9050 before a timid bounce.
The fact that Australian indicators - accounting as part of today's GDP composition - had picked up in recent days, the main one being Tuesday's increase in Australian net exports, led the market to believe that a GDP reading above expectations was probable, potentially having contributed to AUD' upward adjustment pre-GDP data.
What this did was forcing the market to preset a higher psychological target of around 0.8% (QoQ) for today vs 0.6% delivered. As a consequence, amid the 0.2 bp negative deviation, sellers found the perfect trigger to dump huge loads of Australian Dollars, sending the AUD/USD rate almost a full cent lower from its session high.
On the Yen front, there was some volatile bidirectional rotations intraday, keeping a lively session with opportunities to make some pips from both sides. At the end though, consistently solid dip buying outweighed a mid morning rapid Yen resurgence, leading most Yen crosses to eventually consolidate at the upper bands of the session's range.
The rest of currencies, with the exception of the New Zealand Dollar, which was dragged lower on Aussie sales, remained in expected low range averages intraday, as Central Bank meeting (BoE, ECB, BoC) are due the next two days, thus capital flows get mostly sidelined ahead of risk headlines.
Main headlines in Asia
Australian Q3 GDP disappoints the market
China HSBC China Services PMI 52.5 in November
BoJ Sato waters down expectations of 'JQE2'
Australian Tresurer: Economy is in second gear
AUD/USD: Barrier at 9050 is now history
The fact that Australian indicators - accounting as part of today's GDP composition - had picked up in recent days, the main one being Tuesday's increase in Australian net exports, led the market to believe that a GDP reading above expectations was probable, potentially having contributed to AUD' upward adjustment pre-GDP data.
What this did was forcing the market to preset a higher psychological target of around 0.8% (QoQ) for today vs 0.6% delivered. As a consequence, amid the 0.2 bp negative deviation, sellers found the perfect trigger to dump huge loads of Australian Dollars, sending the AUD/USD rate almost a full cent lower from its session high.
On the Yen front, there was some volatile bidirectional rotations intraday, keeping a lively session with opportunities to make some pips from both sides. At the end though, consistently solid dip buying outweighed a mid morning rapid Yen resurgence, leading most Yen crosses to eventually consolidate at the upper bands of the session's range.
The rest of currencies, with the exception of the New Zealand Dollar, which was dragged lower on Aussie sales, remained in expected low range averages intraday, as Central Bank meeting (BoE, ECB, BoC) are due the next two days, thus capital flows get mostly sidelined ahead of risk headlines.
Main headlines in Asia
Australian Q3 GDP disappoints the market
China HSBC China Services PMI 52.5 in November
BoJ Sato waters down expectations of 'JQE2'
Australian Tresurer: Economy is in second gear
AUD/USD: Barrier at 9050 is now history