Currency Analyst since 2010

Jan. 14: Asian session

Asian shares dipped on Tuesday, hurt by a tumble on Wall Street. MSCI's broadest index of Asia-Pacific shares outside Japan was down by 0.1% after gaining 0.8% in the previous session. Japanese Nikkei is down by more than 3%.

USD/JPY recovered to 103.50 after sliding to 102.85 yesterday. Yen fell as Japanese current account deficit exceeded forecasts. USD was also supported by the announcement of a $13.6 billion deal by Japan’s Suntary Holdings Ltd to buy US spirits company Beam Inc. Still the greenback’s upside potential weakened after the disappointing US jobs report released on Friday which added to the case for the Fed to keep rates low for longer.

Australian and New Zealand dollars both gave back a part of their Monday gains. AUD/USD retraced from Monday high of $0.9090 to $0.9020. NZD/USD is consolidating in the upper part of the $0.8390/60 range. New Zealand Q4 business confidence gave some support to kiwi, rising from 38 to 52 (highest since 1994).

EUR/USD is trading in the $1.3665 area, below Friday’s peak at $1.3690. GBP/USD is little changed at $1.6385 after it slid by about 100 pips yesterday.

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