Asia Session Recap

Daily Forex Fundamentals | Written by Forex.com | Oct 09 08 05:59 GMT |

Asian stocks turned positive after five brutal days of losses and the Yen slid due to yesterdays joint rate cuts increasing global risk appetite. The Yen fell against the Dollar, Euro, Aussie Dollar as well as the Kiwi Dollar as traders moved into higher yielding assets with a new found confidence that central banks are coordinating efforts to stem the bleeding in the credit crisis. South Korea and Taiwan followed suite with rate cuts today, and it is expected that further cuts are in the cards for the UK, US and ECB

It was a good time to be long USD/JPY as it kicked off the session and its lows of 98.90 and never looked back as it tapped out at a 101.20 session high. The EUR/JPY move was a big one as well, flying from the opening 134.88 rate, to 138.25 before dropping a full big figure prior to the London session. AUD/JPY topped out at 70.06, and NZD/JPY hit a high of 61.70, a strong showing for the crosses. Overall, it seems that the equity market is still driving the Yen, as has been the case as of late.

The EUR/USD took second fiddle to the Yen again, but the pair made some dramatic moves, specifically hitting above 1.3700 after a start near 1.3580. AUD/USD also made up lost ground from yesterdays collapse as the pair moved almost three big figures in Asia from 0.6633 to 0.6940 and shrugged off weak employment data. Most traders still see the potential for more RBA cuts in the future.

All in all, the liquidity has been poor and the volatility has been great, and we are witnessing moves that will be talked about years from now.

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