Dec. 11: Asian session
The US congress has unexpectedly reached a budget deal that ensures no government shutdown in January and October 2014. The dollar halted its decline versus the major currencies as this news had significantly increased the chances for the QE tapering in December or in early 2014. Asian equity markets are all trading in the red zone.
It was a bad session for the Australian and New Zealand dollars. AUD/USD weakened to $0.9130 after having peaked at $0.9170 yesterday. Aussie is pressured by a weaker Westpac consumer confidence data (down from 110.3 to 105) and by the news that GM/Holden car producer will stop manufacturing cars in Australia by 2017. NZD/USD slipped to $0.8270. The dairy giant Fonterra has cut the dividend payout forecast for 2014 today.
Yen crosses are trading under a slight pressure for a second day in a row. USD/JPY is trading in the red, but remains supported at 102.60 for now. Nikkei 225 closed the session with a 0.62% loss.
EUR/USD and GBP/USD have both weakened from the yesterday’s peaks, while USD/CAD and USD/CHF are a little bit up.