USD extends post-NFP recovery in Asia, UK Services PMI – key

By FXStreet FXStreet (Mumbai) – A dull start to a busy week ahead, with thin liquidity as most Chinese and Australian traders remain on the side-lines on their respective national holiday. The USD/JPY pair regained 120 handle on its recovery from NFP-induced slump while the Antipodeans remain on the bids digesting the latest OZ fundamentals.

Key headlines in Asia

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Key events for week ahead – Rabobank

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

A low-key affair in Asia, with rising demand for higher-yielding currencies evidenced across the board. The US dollar extends its recovery mode against its major competitors, after the heavy losses booked on the disappointing non-farm payrolls release on Friday. The USD index, the virtual gauge of the greenback’s relative strength, now trades -0.11% at 95.94, recovering from 95.30 – NFP lows.

The Japanese yen gave away gains and fell into the red zone as the USD bulls jumped back into the bids and regained 120 barrier and beyond. The USD/JPY pair remains supported near 119.90 region and now tests highs at 120.10 levels.

The OZ currencies remained firmly bid with the Kiwi emerging the …read more

Source:: FX Street