Back
12 Mar 2014
Asia Recap: China's metal market takes center stage
FXStreet (Bali) - Concerns over additional defaults in China persisted, yet currencies were somehow immune to it, with losses mostly concentrated in benchmark indexes and the Copper market.
The AUD/USD opened Asia in a weak undertone, finding a low for the session at 0.8947, mainly driven by China's commodity markets (Copper fell 5% a the open) and a weaker-than-expected Australian consumer confidence. Despite the Chinese woes, the pair was held by bids scattered around 0.8950 before recovering some odd 10/15 pips above the lows as China's metal futures market eased the selling pressure from earlier on the day; the AUD upside was never threatened though. As a reminder, the pair had been sold quite aggressively on Tuesday after rumours that another Chinese company (solar) had defaulted on its bonds.
The USD/JPY found buyers bellow the 103.00 level, sending the pair towards a session high of 103.10 before the round number acted yet again as a magnet attracting prices. Interestingly, despite the Nikkei expanded its losses from -1.7% at the open to approach the close down 2.4%, the pair was resilient to follow suit, an indication that the correlation effect was eclipsed by very solid dip buying in USD/JPY in what is still perceived as a market in bullish mode as long as 102.30/50 (tenkan/kijun lines) are not lost. It looks like nobody wants to miss out on the possible uptrend resumption.
Gold printed a new 2014 high by touching the critical $1,360.00 level, pausing right underneath ahead of European trading, where trades may be targeting some sizeable stops above the key area. With regards to the New Zealand Dollar, the rate against the US Dollar was kept below the 0.85 area, with a range of 0.8450-75 printed ahead of Thursday's RBNZ rate decision (hike expected). The rest of G10 currencies offered little moves to report.
Main headlines in Asia
Fears mount on further Chinese bond defaults
BOE destroys tapes of meetings after minutes are published
PBoC ready to cut bank reserves if GDP slows down - Reuters
Aus Westpac consumer sentiment falls below 100.00
Shanghai copper market limit down
Australian Home Loans flat m/m vs+ 0.5% exp
PBOC sets USD/CNY at 6.1343
China's bank regulator warns of property market risk - Nomura
The AUD/USD opened Asia in a weak undertone, finding a low for the session at 0.8947, mainly driven by China's commodity markets (Copper fell 5% a the open) and a weaker-than-expected Australian consumer confidence. Despite the Chinese woes, the pair was held by bids scattered around 0.8950 before recovering some odd 10/15 pips above the lows as China's metal futures market eased the selling pressure from earlier on the day; the AUD upside was never threatened though. As a reminder, the pair had been sold quite aggressively on Tuesday after rumours that another Chinese company (solar) had defaulted on its bonds.
The USD/JPY found buyers bellow the 103.00 level, sending the pair towards a session high of 103.10 before the round number acted yet again as a magnet attracting prices. Interestingly, despite the Nikkei expanded its losses from -1.7% at the open to approach the close down 2.4%, the pair was resilient to follow suit, an indication that the correlation effect was eclipsed by very solid dip buying in USD/JPY in what is still perceived as a market in bullish mode as long as 102.30/50 (tenkan/kijun lines) are not lost. It looks like nobody wants to miss out on the possible uptrend resumption.
Gold printed a new 2014 high by touching the critical $1,360.00 level, pausing right underneath ahead of European trading, where trades may be targeting some sizeable stops above the key area. With regards to the New Zealand Dollar, the rate against the US Dollar was kept below the 0.85 area, with a range of 0.8450-75 printed ahead of Thursday's RBNZ rate decision (hike expected). The rest of G10 currencies offered little moves to report.
Main headlines in Asia
Fears mount on further Chinese bond defaults
BOE destroys tapes of meetings after minutes are published
PBoC ready to cut bank reserves if GDP slows down - Reuters
Aus Westpac consumer sentiment falls below 100.00
Shanghai copper market limit down
Australian Home Loans flat m/m vs+ 0.5% exp
PBOC sets USD/CNY at 6.1343
China's bank regulator warns of property market risk - Nomura