Asia Session Recap

Daily Forex Fundamentals | Written by Forex.com | Sep 07 09 05:39 GMT |

With the US out for a bank holiday tomorrow, trading was subdued today in Asia to start off the new trade week. Risk made a subtle move back into the markets as the weekend's G-20 meeting hinted that the global economy was now in the process of shaking off the last remnants of the financial crisis. The Dollar and the Yen suffered on that perception, and the commodity based currencies benefitted greatly. The EUR/USD moved higher right from the 1.4300 open and never looked back as it peaked out at just over 1.4335 for the day. GBP/USD almost reached 1.6420 and then collapsed to near 1.6364 ahead of this week's BoE rate decision. Although the ranges were small, USD/JPY was able to move higher from 92.90 lows to 93.20 highs. With equities higher in Asia, most notably China's CSI 300 by over 2%, the EUR/JPY pair was able to add 70 pips to its 132.86 opening lows. The other yen crosses followed, although in not as dramatic a fashion. The big movers of the day were the Aussie and Kiwi dollars, both reaching yearly highs as commodity prices gave the currencies a nice boost. AUD/USD reached an 0.8537 level not seen since August of 2008, and NZD/USD fell five pips shy of 0.7000, regardless reaching a high from late September of 2008. After tomorrows US holiday we should have the makings of a busy week, with an RBNZ rate decision and Australian Trade Balance due on Thursday, and a slew of Chinese data due out on Friday Upcoming Economic Data Releases (London Session): 9/7/2009 8:30 EC Sentix Investor Confidence SEP -17 -13.7 9/7/2009 10:00 GE Factory Orders MoM (sa) JUL 4.50% 2.00% 9/7/2009 10:00 GE Factory Orders YoY (nsa) JUL -25.30% -20.60% Forex.com http://www.forex.com DISCLAIMER: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.