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Session Recap: Amari takes the Yen down again; USD slightly stronger

FXstreet.com (Barcelona) - Asia-Pacific trading started with a broad weak tone for the USD, but soon reversed by the Tokyo open on new comments from Japan Econ Min Amari softening those made yesterday that took USD/JPY down to fresh weekly lows below the 102 handle. USD shot up on the news and posted gains against CHF at session highs above 0.97, USD/JPY at 102.75, EUR/USD session lows at 1.2860, and AUD/USD at 0.9750.

Later on USD eased again, leaving it still slightly in the positive since the Asia-Pacific open. Local share markets show red lights overall, although mostly with small loses, as is the case for Shanghai, Hong-Kong and Tokyo, while the Australian ASX is the big loser down -0.55%. US SP500 futures remained little changed for the session after the NY close, just like Gold and Oil, that trade around the $1390 and $96.5 respectively.

In the economic data front, New Zealand posted an increasing number of Visitor arrivals by +2.2% on a monthly basis, and a Credit card spending of +4% year on year, with quarterly Inflation expectations year on year slightly falling to +2.1% from previous +2.2%. The CB leading index in Australia decreased to +0.1% m/m from previous at +0.3%, and RBA meeting minutes did not surprised market participants much, pointing out to soft inflation and weak business conditions as main factors to cut rates in last meeting to record low since year 1959 at 2.75%.

Main headlines in the Asian Session:

Golman Sachs: UK exit from European Union would be ‘loss/loss scenario’

Commodities Brief: Metals have roller-coaster of a day as buyers defend previous lows

Wall Street Journal: Japanese pension funds are already moving into overseas investments

Fitch: Slow growth in Europe and U.S has potential for negative affect on ratings

NZD/USD stalling ahead of the 0.8200

EUR/USD attempts to rebound, advances capped below 1.2900 thus far

Japan’s economy minister Amari: Hopes the market to find balance on exchange rate

USD/JPY buyers continue to support the 102.00 area

UBS cuts its China GDP forecast (2013) to 7.7% from 8%

RBA minutes keeps dovish tone

Former Italian PM Monti: Italy is not heading for another election in the next 6 months

Reuters – Amari: The weekend comments were misread. He didn’t say it in the way it was reported in English

New Zealand 2Q RBNZ Inflation Expectations (YoY) declines to 2.1% vs 2.2%

EUR/JPY continues to eye upper end of range near 133.00

Fed-Speak to dominate EUR/USD trading in coming days

The EUR/USD was able to claw back a small portion of its losses suffered last week, finishing the day up 64 pips at 1.2884. Economic news was light on the session with European markets closed and no releases out of the US. Market participants will be expecting volatility to really pick up later in the week when we see Fed Chariman Bernanke’s testimony to Congress, the release of the most recent FOMC minutes, and a number of other regional Fed speakers on the wires. Given the recent market buzz of the prospects of Fed tapering QE, the next few days could help set a more established trend for the pair as we near month end.
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