11/03/2014
The yen remained trapped in narrow ranges in Asian trade on Tuesday after the Bank of Japan stood pat and gave no indication that further easing steps were in the cards yet.
Data on Monday underscored the economic recovery remains fragile. Japan posted a record current account deficit in January, and its fourth-quarter gross domestic product growth was revised down, suggesting the effects of the BOJ's easing might have already begun to wane. A Reuters poll last month showed economists expect the BOJ to ease policy further around the middle of the year, as they say it will otherwise be difficult to meet the bank's 2 percent inflation target. The dollar and euro slow against the Japanese currency, nearly flat on the day. The greenback bought 103.30 yen, after wavering in a 103.20-103.43 yen range, while the single currency changed hands at 143.22, after trading between 143.08 and 143.44.
The dollar was little changed against major currencies, supported by hopes U.S. job growth would pick up in the wake of last week's mildly encouraging report on hiring and as tension over Ukraine remained contained. The dollar index was barely changed against a basket of major currencies inching up slightly to 79.804.
The EUR/USD edged down about 0.1 percent to 1.3865 but remained not far from a 2-1/2-year peak of 1.3915 touched on Friday. The euro's resilience held up even as the crisis in Ukraine continued. A pro-Russian force opened fire in seizing a Ukrainian military base in Crimea on Monday and NATO announced reconnaissance flights along its eastern frontiers.
The Australian and New Zealand dollars showed noticeable resilience on Tuesday after worries about China's economy hit commodity prices hard. The AUD/USD often used as a liquid proxy for China plays because of its sensitivity to developments in Australia's largest export market, was up about 0.1 percent at 0.9021.Support for the Aussie is seen around 0.9000, then 0.8985 with resistance at 0.9070 according to analysts.
The yen remained trapped in narrow ranges in Asian trade on Tuesday after the Bank of Japan stood pat and gave no indication that further easing steps were in the cards yet.
Data on Monday underscored the economic recovery remains fragile. Japan posted a record current account deficit in January, and its fourth-quarter gross domestic product growth was revised down, suggesting the effects of the BOJ's easing might have already begun to wane. A Reuters poll last month showed economists expect the BOJ to ease policy further around the middle of the year, as they say it will otherwise be difficult to meet the bank's 2 percent inflation target. The dollar and euro slow against the Japanese currency, nearly flat on the day. The greenback bought 103.30 yen, after wavering in a 103.20-103.43 yen range, while the single currency changed hands at 143.22, after trading between 143.08 and 143.44.
The dollar was little changed against major currencies, supported by hopes U.S. job growth would pick up in the wake of last week's mildly encouraging report on hiring and as tension over Ukraine remained contained. The dollar index was barely changed against a basket of major currencies inching up slightly to 79.804.
The EUR/USD edged down about 0.1 percent to 1.3865 but remained not far from a 2-1/2-year peak of 1.3915 touched on Friday. The euro's resilience held up even as the crisis in Ukraine continued. A pro-Russian force opened fire in seizing a Ukrainian military base in Crimea on Monday and NATO announced reconnaissance flights along its eastern frontiers.
The Australian and New Zealand dollars showed noticeable resilience on Tuesday after worries about China's economy hit commodity prices hard. The AUD/USD often used as a liquid proxy for China plays because of its sensitivity to developments in Australia's largest export market, was up about 0.1 percent at 0.9021.Support for the Aussie is seen around 0.9000, then 0.8985 with resistance at 0.9070 according to analysts.
