FXstreet.com (Barcelona) - Asian markets are going through a negative session on the back of an unexpected deterioration on U.S. Consumer confidence Index, which has damaged risk appetite. Dollar and Yen are moving at higher levels favored by a risk aversion climate.

Japanese Nikkei Index has declined 1.4%, while Hong Kong's Hang Seng Index dropped 1.7% and South Korean Kospi Index fell 2.5%. Markets in China, Taiwan and India went also down.

Tuesday's unexpected decline on U.S. consumer confidence has weighed Asian markets as a grim outlook on U.S. spending will, most likely, dampen recovery for Asian companies, whose volume of exports to the U.S. is rather significant.

Dollar and Yen profit on risk aversion

EUR/USD retreat from year to date high at 1.5064 extended lower on Tuesday's U.S. session, with the pair dipping from levels right below 1.4900 to 1.4770 2-week low before Asian session opening. At the moment, the Euro is trying to set a base at 1.4800 and trades around 1.4830.

GBP/USD is holding better than the Euro and reversal from 1.6440 high on Tuesday found support at 1.6310, and the Pound rose afterwards to attempt to break 1.6400 resistance twice, although the resistance level remains intact, and the Pound eased to 1.6340.

USD/JPY rally was capped on Tuesday's Asian session at 92.30, and the pair retreated during the whole day to reach a session low at 91.10 on Wednesday before bouncing to levels around 91.35 at the moment of writing.