Markets calmer after third Chinese yuan devaulation

August 13, 2015

Article by ForexTime

JPY
• USD/JPY dipped after the Chinese yuan was fixed lower again but risk sentiment was better today and the USD/JPY bounced back quickly.
• USD/JPY moved up, from 124.07 to 124.46 in a slow Asian session.
• Resistance at 124.50, support at 124.00.
• EUR/JPY traded a range of 138.50-85.
• GBP/JPY traded 193.75 to 194.38, AUD/JPY 91.19 to 92.04, NZD/JPY 81.94 to 92.48.

EUR
• EUR/USD opened in Asia at 1.1158, 1.1% gain yesterday on broad USD weakness.
• Brief push up to 1.1189 post-CNY fix before reversing lower, low 1.1131.
• Market was less risk-off today, regional equity markets were calm despite CNY moves.
• As China anxiety fades, odds of Fed September rate hike up.
• Rallies on European bourses likely, should weigh on EUR.
• EUR/USD support at 1.1075, Fibo 38.2% of 1.0847-1.1215.

GBP
• GBP/USD was steady after a push down from 1.5661 to 1.1.5602 in New York.
• Asia range 1.5608-36, due to disappointing UK jobs data yesterday. Support is seen at 1.5600.
• EUR/GBP backs off from 0.7170 high overnight, Asia 0.7156 to 0.7127.

CHF
• USD/CHF was better bid, 0.9732-70 in Asia, moved away from 0.9678 yesterday’s low.
• EUR/CHF too steadies after yesterday’s 1.0964-1.0840 fall, Asia 1.0874-90.

AUD
• AUD/USD opened in Asia at 0.7380, traded between 0.7325-0.7409 as China was the focus again.
• Massive reversal yesterday from 0.7217 low, but China anxiety fading.
• Asia central bank intervention to prop up currencies supportive.


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NZD
• NZD/USD 0.6595-0.6642 parameters in Asia, China again focus.
• Market better bid with China anxieties fading, regional bourses up.
• Range 0.6615-35 after weaker CNY fix digested, AUD/USD too in range.
• AUD/NZD better bid, range 1.1130-68, low yesterday 1.1098.

 


Article by ForexTime

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