Asia Recap: New leg up for the Aussie

FXStreet (Bali) - The Australian Dollar had another stellar performance following upbeat retail sales, NAB business confidence (Q4 and a unexpected trade surplus with a big pick up on export volumes.

The AUD/USD broke above strong 0.8940 resistance, extending to the upside until faced with 0.8975/80 area, where the lack of follow-through ahead of the psychological 0.90 number led to a correction phase. Price trades stable neat 0.8960 ahead of Europe, with technicals supporting the case for further gains in the coming sessions.

The USD/JPY traded i a tight range pressing against the upper end of its 1c range 100.75-101.70, with a buoyant Nikkei 225, up 0.6% post lunch, underpinning prices. Ahead of the NFP report on Friday, the conditions of the market favour an extension of the range.

The rest of currencies, including the Euro and the Sterling, traded in their usual small ranges, with today's ECB and BoE monetary policy announcements, keeping most capital sidelined until the outcomes.

Main headlines in Asia

Upbeat Aus retail sales, surprising trade surplus in Dec

Australian business confidence for Q4 at 2½ year high

Impressive AUD spike mostly fuelled by Aus trade surplus

BOJ's Iwata: Won't stop easing without stable inflation prospects

AUDUSD: There is a lot of chatter about stops

EUR downside limited even on dovish ECB - RBS

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