EUR/USD hit 11-year low
EUR/USD is trading at the 11-year low in the 1.1030 area ahead of the European Central Bank’s meeting. The market is looking forward to the details of the quantitative easing (QE), or bond-buying, program, which the ECB is going to start this month.
According to Reuters, these details will be about how QE will work, when the buying will start, whether it applies to paper with negative yields and how the ECB will evaluate the results of the program. Analysts don’t expect any big surprises at the meeting.
USD/JPY rose to 119.90 as data showed that Japanese investors made the second largest weekly net purchases of foreign shares since the count began in 2005. These data showing capital outflow from Japan means reduces demand for the yen.
AUD/USD is trading just above 0.7800. Data from Australia came almost in line with forecasts, and Philip Lowe, Deputy Governor of the Reserve Bank of Australia, said the Australian dollar was much closer to fair value than at any time in the past couple of years, but pointed out that further easing may be appropriate. However, Aussie still feels intimidated by the downtrend resistance line in the 0.7850 area.
NZD/USD was the biggest loser during the Asian session declining by more than 50 points. Kiwi was hit after China downgraded its annual growth target from 7.5% to “about 7%”.