Mar. 14: Asian session
Asian stocks dropped after at least 4 investment banks cut their growth forecasts on Chinese economy. MSCI Asia Pacific Index fell 1.65% and is set for the biggest weekly decline since May 2012. Nikkei 225 fell by 3.56%.
USD/JPY slid to 101.60 approaching yesterday’s low. Yen headed for its biggest 5-day gain versus the dollar in 7 weeks as investors sought haven assets amid persisting tension ahead of a referendum that may lead to Crimea’s secession from Ukraine.
Gold hit a new high of $1376 today (highest since Sep. 2013). Commodity currencies are correcting lower on Friday. AUD/USD extends the downside after meeting resistance at $0.9080 yesterday. Aussie remains supported by the $0.9000 mark. NZD/USD retraced to $0.8530 from an almost one-year high of $0.8606 hit post the yesterday’s RBNZ meeting. NZ Feb. business manufacturing index came unchanged at 56.2 (Jan. reading revised up to 56.3).
EUR/USD slid to the $1.3850 area, below yesterday’s high at $1.3966. GBP/USD is trading in the $1.6620 area after peaking to $1.6718 yesterday.