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27 Nov 2014
Asia Recap: AUD cheers up better Capex
FXStreet (Bali) - The Antipodean currencies (AUD, NZD) were the best performers in Asia, with the combination of a better-than-expected Capex in Australia and broad-based USD weakness vs AXJ complex the main drivers.
AUD/USD sellers looked initially positioned to pressure the exchange rate further down ahead of the Capex, with a test of 0.8550 failing to hold, leading to 0.8530 pre-Capex. After learning of the positive surprise in Australia's capital expenditure though, sellers gradually pulled their orders heading to the exits, and fresh buying entered the market to drive the price through stops above 0.8565/70, setting a new high at 0.8601.
NZD/USD traded in sync with the AUD, with an initial setback on softer-than-expected NZ trade numbers quickly fading by a market that remains in 'buy dips' dynamics. Once Aus Capex was out of the way, and with AUD/USD appreciating and the RBNZ confirming that there was no intervention in October, the rate saw a spike above 0.79, reaching its highest so far at 0.7915.
USD/JPY remained heavy throughout the session, with Japanese exporters and fast money main suspects on the move down. Market sources also reported that strong Japanese repatriation of receivables for November added to the offered tone via exporters. Light stops were taken out below 117.40, allowing further slides towards 117.25, although buying interest on dips still noted, resulting on a slow grind lower, failing to gather much momentum so far.
Key headlines
Upbeat Australian Capex numbers
Australia HIA New Home Sales (MoM) up to 3% in October from previous 0%
NZ shows trade deficit of $908 million in Oct
NZ trade deficit likely to deteriorate further - ANZ
RBNZ sold net NZ$1m in October : No signs of intervention
AUD/USD sellers looked initially positioned to pressure the exchange rate further down ahead of the Capex, with a test of 0.8550 failing to hold, leading to 0.8530 pre-Capex. After learning of the positive surprise in Australia's capital expenditure though, sellers gradually pulled their orders heading to the exits, and fresh buying entered the market to drive the price through stops above 0.8565/70, setting a new high at 0.8601.
NZD/USD traded in sync with the AUD, with an initial setback on softer-than-expected NZ trade numbers quickly fading by a market that remains in 'buy dips' dynamics. Once Aus Capex was out of the way, and with AUD/USD appreciating and the RBNZ confirming that there was no intervention in October, the rate saw a spike above 0.79, reaching its highest so far at 0.7915.
USD/JPY remained heavy throughout the session, with Japanese exporters and fast money main suspects on the move down. Market sources also reported that strong Japanese repatriation of receivables for November added to the offered tone via exporters. Light stops were taken out below 117.40, allowing further slides towards 117.25, although buying interest on dips still noted, resulting on a slow grind lower, failing to gather much momentum so far.
Key headlines
Upbeat Australian Capex numbers
Australia HIA New Home Sales (MoM) up to 3% in October from previous 0%
NZ shows trade deficit of $908 million in Oct
NZ trade deficit likely to deteriorate further - ANZ
RBNZ sold net NZ$1m in October : No signs of intervention