1 May 2014
Asia Recap: Labour day leads to tight consolidations
FXStreet (Bali) - With low levels of volatility across the FX market in the current quarter, along with varies Asian financial centers closed for holidays - labour day -, the result was a predictable quiet range-bound session.
The highlight in Asia was the official Chinese manufacturing PMI, which came slightly below expectations at 50.4 in April vs 50.5 expected. The Australian Dollar saw a shallow dip to .9276 initially, but buyers stepped in to send the rate marginally above .93 before a retreat to .9290.
USD/JPY managed to recover off lows following the major US GDP disappointment, which had sunk the rate towards 102.00 in early US hours. However, the combination of drying liquidity, another anticipated $10 bn taper by the Fed in yesterday's FOMC and a rise of 1% by the Nikkei 225, were all contributors helping to recover the pair.
The rest of currencies, including the Kiwi, traded on small ranges as well, with trading in Europe today also affected by public holidays - labour days - in most of Europe, thus turning all the attention on the British Pound, which will see the release of manufacturing PMI numbers.
Main headlines in Asia
IMF approves $17bn aid package to Ukraine
Aus AiG Mfg Index: Faster pace of contraction since July 2013
China's Manufacturing PMI comes at 50.4
Volatility RIP until the day of resurrection - RBS
The highlight in Asia was the official Chinese manufacturing PMI, which came slightly below expectations at 50.4 in April vs 50.5 expected. The Australian Dollar saw a shallow dip to .9276 initially, but buyers stepped in to send the rate marginally above .93 before a retreat to .9290.
USD/JPY managed to recover off lows following the major US GDP disappointment, which had sunk the rate towards 102.00 in early US hours. However, the combination of drying liquidity, another anticipated $10 bn taper by the Fed in yesterday's FOMC and a rise of 1% by the Nikkei 225, were all contributors helping to recover the pair.
The rest of currencies, including the Kiwi, traded on small ranges as well, with trading in Europe today also affected by public holidays - labour days - in most of Europe, thus turning all the attention on the British Pound, which will see the release of manufacturing PMI numbers.
Main headlines in Asia
IMF approves $17bn aid package to Ukraine
Aus AiG Mfg Index: Faster pace of contraction since July 2013
China's Manufacturing PMI comes at 50.4
Volatility RIP until the day of resurrection - RBS