Asia risk-on at full steam on ECB hints, EZ flash PMIs eyed

By FXStreet FXStreet (Mumbai) – Risk-on sentiment was the main theme in the Asian session after ECB Draghi’s strong indications of QE reassessment in Dec spurred risk-on rally in global equities. Markets witnessed erratic moves in the majors in early Asia while the Antipodeans were strongly bids on the back of rising demand for risker currencies.

Key headlines in Asia

Flash Japan Manufacturing PMI: Highest since March 2014

Changes to NAB’s variable home loan interest rates – media release

ANZ lifts standard variable mortgage rate by 0.18%

Dominating themes in Asia – centered on JPY, AUD, NZD

The USD bulls took a breather in its upsurge and retreated across the board in Asia, following the dovish ECB Chief Draghi’s comments spurred massive sell-off in the EUR/USD. Despite, a broadly weaker US dollar, the dollar-yen pair witnessed a spike to 121 handle in early trades and now trades near lows around 120.60 region. The yen jumped back into the bids versus the greenback after Japan’s flash manufacturing PMI gauge hit a 1.5 year high. While traders resorted to profit-taking after the major failed to surpass 121 barrier.

The Antipodean currencies benefited the most from the risk-on rally in equities and also amid rising appetite for higher …read more

Source:: FX Street