Opened in Asia at Y83.40 and after an early dip to Y83.35 edged up to Y83.50 in very quiet trade as Tokyo observed the Vernal Equinox holiday and remained in the range for the rest of the session. Cross were quiet as well with EUR/JPY trading a tight Y110.29-49 range, and GBP/JPY easing from Y132.62 to Y132.30. AUD/JPY however was an entirely different story. The pair opened at Y88.51 and headed higher to Y88.57 as RBA minutes suggested rates were appropriate and the economy faced less danger from the EU debt crisis compared to recent months. This was short lived and comments from BHP’s iron ore exec Ashby that Chinese demand for Australian iron ore appeared to be slowing led a panic sell off in AUD/USD, compounded by some strong demand in EUR/AUD. AUD/JPY collapsed with the AUD/USD to Y88.11, before picking up marginally to Y88.28. The pair continues to look pressured ahead of the european open with stops now touted on a break of Y88.00. Dollar offers sit at Y83.50/60 with bids at Y83.00/10 and stops through Y82.90.
EasyForexNews Research Team