FXstreet.com (Barcelona) - Risk aversion has remained dominant in Asian markets which have extended previous day's declines, weighed, this time, by weak housing figures in the U.S. Dollar and Yen have been favoured as safe havens.
Japanese Nikkei Index has declined 1.9%, while Hong Kong's Hang Seng Index dropped 2.1% and South Korean Kospi Index dropped 2.4%. In Australia, the S&P Index has dropped 2.1%.
Asian trading session has been influenced by the unexpected decline on U.S. new home sales, 3.6% down in September, against market expectations of a 2.4% increase, which has revived fears of a weaker than forecasted economic recovery. Besides demand for mortgages has declined during the past three weeks, according to data by the Mortgage Bankers Association.
Dollar and Yen continue appreciating
EUR/USD declined during U.S. session on Wednesday for the third consecutive day, and retreat from 1.5060 year to date high, has extended to 1.4680 low. During Asian session the Euro has remained consolidating above 1.4700 trading in a range from 1.4700 to 1.4735.
GBP/USD remains holding better than the Euro during the Current week. The Pound attempted to rally during U.S. session but capped at 1.6465 intra-week high, the pair dropped back within the week's range from 1.6285 to 1.6440. At the moment of writing, the pair trades at 1.6400.
USD/JPY decline from 92.30 high on Monday extended on U.S. session below 91.00 on the back of weak housing data, and the Dollar dipped to 90.25 week-low during Asian trade, before bouncing to levels around 90.45 at the moment of writing.