April 11: Asian session
Asian shares fell from an almost 3-month high amid as an escalating selloff on Wall Street spread to Asia and stronger yen dragged Japanese equities toward their worst week since June. The MSCI Asia Pacific Index declined 1%. Nikkei is down by more than 2%. USD/JPY is trading in the 101.60 area after it hit 101.32 yesterday.
China's March inflation came below expectations, suggesting domestic demand remains weak as the economy loses momentum. CPI rose by 2.4%, against a 2.0% rise in February and a forecast of 2.5%. Commodity currencies gave up some ground on the back of the increased risk aversion. AUD/USD is trading under bearish pressure around $0.9380 after having peaked at $0.9460 yesterday. NZD/USD dipped to $0.8620. Gold consolidates around $1320 – slightly below the yesterday’s peak.
EUR/USD is trading on the upside, just below $1.3900. GBP/USD slid to $1.6765 from yesterday’s high at $1.6820. US dollar is still affected by the FOMC minutes that reduced expectations of the increase in American interest rates.