20 Nov 2013
Asia Recap: USD sellers capitalize on Bernanke's dovish speech
FXstreet.com (Barcelona) - The dominant theme in the FX market ahead of the European open continues to be USD weakness, with Yen also having retained its dovish tone, yet it has shown a slightly more combatant performance.
Most of the trading action in Asia came on leaked headlines from a Fed's Bernanke speech in a speech to the National Economists Club in New York, with Bernanke saying "the Fed remains committed to maintaining highly accommodative polices for as long as they are needed", comment that fuel a further depreciation in the USD after lagging on Tuesday.
In an article published earlier in Asia, Greg Gibbs, FX Strategist at RBS notes, Fed Bernanke’s speech in Asia strengthens the case that "the Fed’s ultra low rates and forward guidance policy is expected to remain in place potentially long after the Large Scale Asset Purchase (LSAP) plan has been tapered and to re-emphasis the unemployment threshold of 6.5% is not a trigger."
EUR/USD saw stop loss orders above the 50% fibo being tripped after Bernanke's speech, with the new highs printed at 1.3579. AUD/USD struggled to break above 0.9445/50 resistance, area where steady offers deny further progress ahead of additional selling interest from leverage community between 0.9450-75, market sources suggests.
Meanwhile, the USD/JPY has failed to retest the 100.40 recent highs area, leading to a potential lower high structure developing in the intraday charts. GBP/USD has been trading in a narrow range above 1.61 ahead of BoE minutes.
Key headlines in Asia
NZ PPI Q3 Output up 2.4% q/q
Bernanke: Fed committed to QE as long as needed
Japan's trade deficit for October worse-than-expected
RBA'S DeBelle: Reiterates policy makers prefer weaker AUD
China October CB Leading Economic Index decreases to 0.6 vs 1.1
Australia's Gruen: Level of AUD is unhelpfully high
Fed Bernanke rates low for longer but taper coming - RBS
Most of the trading action in Asia came on leaked headlines from a Fed's Bernanke speech in a speech to the National Economists Club in New York, with Bernanke saying "the Fed remains committed to maintaining highly accommodative polices for as long as they are needed", comment that fuel a further depreciation in the USD after lagging on Tuesday.
In an article published earlier in Asia, Greg Gibbs, FX Strategist at RBS notes, Fed Bernanke’s speech in Asia strengthens the case that "the Fed’s ultra low rates and forward guidance policy is expected to remain in place potentially long after the Large Scale Asset Purchase (LSAP) plan has been tapered and to re-emphasis the unemployment threshold of 6.5% is not a trigger."
EUR/USD saw stop loss orders above the 50% fibo being tripped after Bernanke's speech, with the new highs printed at 1.3579. AUD/USD struggled to break above 0.9445/50 resistance, area where steady offers deny further progress ahead of additional selling interest from leverage community between 0.9450-75, market sources suggests.
Meanwhile, the USD/JPY has failed to retest the 100.40 recent highs area, leading to a potential lower high structure developing in the intraday charts. GBP/USD has been trading in a narrow range above 1.61 ahead of BoE minutes.
Key headlines in Asia
NZ PPI Q3 Output up 2.4% q/q
Bernanke: Fed committed to QE as long as needed
Japan's trade deficit for October worse-than-expected
RBA'S DeBelle: Reiterates policy makers prefer weaker AUD
China October CB Leading Economic Index decreases to 0.6 vs 1.1
Australia's Gruen: Level of AUD is unhelpfully high
Fed Bernanke rates low for longer but taper coming - RBS