Asia sees risk-on rally on higher Oil, Fed speaks to dominate thin-trading

By FXStreet FXStreet (Mumbai) – Public holidays in Japan and the US make for a quieter start in the Asia, with limited movements across the FX board amid low volumes. However, the sentiment around the riskier assets remains lifted as oil prices extend their upward trajectory into a new week.

Key headlines in Asia

BOJ’s Kuroda: Inflation dynamics as anticipated

BoC’s Poloz: Overstatement to say IMF forecasts gloomy

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

Risk-on rally in the equities was witnessed across Asia as higher oil prices boosted the risk-sentiment. While liquidity remained thin as Japanese traders remain absent on account of a public holiday today.

USD/JPY traded around a flat-line on the 120 handle, with the downside supported at the hourly 100-SMA while the gains limited by a broadly weaker US dollar.

The Antipodeans saw mixed trading, with the Aussie slightly offered on profit-taking, in line with lower Australian stocks. AUD/USD now trades -0.10% lower at 0.7335. While the Kiwi struggles to extend beyond 0.67 handle, clinching gains on oil price rally. The NZD/USD pair rises to 0.6702, up 0.11% so far.

While out of the commodity-currencies, the Canadian dollar emerged the best performer, mainly driven by higher oil prices. …read more

Source:: FX Street