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3 Mar 2014
Asia Recap: Flight to safety on Russia/Ukraine conflict
FXStreet (Bali) - A risk off session in Asia following the new developments in the Ukraine crisis, with the Yen and the Swissy the best performing currencies.
Russian troops were ordered to occupy strategic location in the southern Ukraine region of Crimea in early Sunday, after Russian President Vladimir won parliamentary approval arguing the escalation of the Ukraine conflict had resulted in the wellbeing of Russians living in the neighboring country under threat.
The AUD/USD tripped stop below 0.89 in early trading, resulting in a limited fall towards 0.8890, where buying interest proved resilient, with multiple tests failing to make it lower. The HSBC China PMI which came in line with expectations at 48.5 vs 48.5 exp, could not provide the catalyst for sustainable weakness. The pair is subject to larger-than-usual volatility in the days ahead as the geo-political conflict in Ukraine continues. Moves on a headline-by-headline basis are likely eclipse techincals near term.
The USD/JPY traded around 50 cents lower vs Friday US close. The Japanese Yen, despite no longer perceived as a ‘safe haven’ investors are willing to hold for a prolongued time given the radical monetary shifts in the country, was nevertheless one of the clear beneficiaries of the Ukraine headlines over the weekend, with a reported North Korean 2-missiles launching into the sea further intensifying the sense of risk aversion, resulting in a session low of 101.26.
The NZD/USD retreated from 0.84+ highs after the risk off established in Asia, posting a session low marginally below the 0.8830 before stabilizing.
EUR/USD, on the back of a surge above 1.38 last Friday, saw a pullback towards 1.3780. Gold saw steady bids pushing the price from $1334 all the way up to test last Friday’s high at $1345. Another big mover was the EUR/CHF, visiting the 1.21 support (14-month low) before bids halted the decline; the SNB’s 1.20 line in the sand is coming into closer contact.
Main headlines in Asia
Russia invades Ukraine: beware of a risk off weekly opening
US's Lew: US is watching Ukraine situation with grave concerns
New Zealand Q4 Terms of Trade rise 2.3% q/q vs 1.9% exp
NZ terms of trade highest since 1861 - BNZ
Australia TD Securities Inflation Index rises 0.2% m/m vs 0.1% prior
Australia AiG Performance of Mfg Index increased to 48.6 in February from 46.7
Moderate deterioration in China's manufacturing sector
Sochi G8 meeting suspended
Russian troops were ordered to occupy strategic location in the southern Ukraine region of Crimea in early Sunday, after Russian President Vladimir won parliamentary approval arguing the escalation of the Ukraine conflict had resulted in the wellbeing of Russians living in the neighboring country under threat.
The AUD/USD tripped stop below 0.89 in early trading, resulting in a limited fall towards 0.8890, where buying interest proved resilient, with multiple tests failing to make it lower. The HSBC China PMI which came in line with expectations at 48.5 vs 48.5 exp, could not provide the catalyst for sustainable weakness. The pair is subject to larger-than-usual volatility in the days ahead as the geo-political conflict in Ukraine continues. Moves on a headline-by-headline basis are likely eclipse techincals near term.
The USD/JPY traded around 50 cents lower vs Friday US close. The Japanese Yen, despite no longer perceived as a ‘safe haven’ investors are willing to hold for a prolongued time given the radical monetary shifts in the country, was nevertheless one of the clear beneficiaries of the Ukraine headlines over the weekend, with a reported North Korean 2-missiles launching into the sea further intensifying the sense of risk aversion, resulting in a session low of 101.26.
The NZD/USD retreated from 0.84+ highs after the risk off established in Asia, posting a session low marginally below the 0.8830 before stabilizing.
EUR/USD, on the back of a surge above 1.38 last Friday, saw a pullback towards 1.3780. Gold saw steady bids pushing the price from $1334 all the way up to test last Friday’s high at $1345. Another big mover was the EUR/CHF, visiting the 1.21 support (14-month low) before bids halted the decline; the SNB’s 1.20 line in the sand is coming into closer contact.
Main headlines in Asia
Russia invades Ukraine: beware of a risk off weekly opening
US's Lew: US is watching Ukraine situation with grave concerns
New Zealand Q4 Terms of Trade rise 2.3% q/q vs 1.9% exp
NZ terms of trade highest since 1861 - BNZ
Australia TD Securities Inflation Index rises 0.2% m/m vs 0.1% prior
Australia AiG Performance of Mfg Index increased to 48.6 in February from 46.7
Moderate deterioration in China's manufacturing sector
Sochi G8 meeting suspended