USD buoyed by risk-on rally in equities, German IP – Up next

By FXStreet FXStreet (Mumbai) – A quiet start to a new week, with the greenback extending gains into Asia, supported by the impressive US jobs data. Risk-on sentiment prevailed this session, although the Antipodes remained heavy amid lower commodity prices. While USD/JPY was well bid above 123 handle and looks to test Friday’s high.

Key headlines in Asia

Do not see financial imbalances caused by QQE – BOJ’s Kuroda

2% price outlook unlikely – BOJ’s Sato

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

A low-key affair in Asia, after a volatile and eventful last week with the ECB shocker and upbeat US jobs report emerging main market movers. Asian traders cheered stronger US NFP report (211k vs. 200k exp.), which signalled that the economic recovery in the world’s largest economy remains on the track and also that the Dec Fed rate hike remains well anchored. Therefore, risk-on market profile persisted in the Asian session, with the USD/JPY pair testing highs near 123.30. The dollar-yen pair also gains, as the yen ran through fresh offers after the BOJ Kuroda’s talk up on the QQE program.

However, the risk currencies such as the Aussie failed to benefit from the risk-on environment and remained …read more

Source:: FX Street