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Currency Analyst since 2010

Dec. 12: Asian session

Asian shares fell on the reduced demand for risk appetite. MSCI’s broadest index of Asia-Pacific shares outside Japan fell by 1%, its sharpest one-day fall in 3 weeks. Nikkei 225 index fell by 1.15%. Market attention is focused on the next-week’s Fed’s Dec. 18 meeting. Increased expectations of a possible QE tapering raise demand for the safe currencies.

AUD/USD opened with a 30-pip gap down around $0.9030. Aussie got hit by the increased risk aversion despite the growth of Australian employment.

NZD/USD edged higher to $0.8286 after it opened with about 15-pip gap up, but is trading below yesterday’s high at $0.8310. Kiwi managed to rise as the Reserve Bank of New Zealand maintained its hawkish stance on Thursday, signaling that interest rates could start rising in the first half of next year.

USD/JPY opened with a gap up at 102.60 and edged a bit up after touching 102.14 yesterday. US dollar strengthened as the market players got positioned for the Fed’s QE tapering next week.

 

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