FXstreet.com (Barcelona) - Asian stock markets have posted a slight recovery on Wednesday on the back news of new economic measures by the Chinese government to combat the economic slowdown. The Dollar has strengthened across the board.
Asian markets have risen for the first time on the current week supported by rumours of Chinese Government's plans to apply a new package of stimulus measures in order to reactivate the country's economy. Previous to the Asian session, Wall Street declined for its fifth straight day.
On the macroeconomic domain, Australia's economy contracted in the last quarter of 2008 for the first time in eight years, Australian GDP declined 0.5%.
The Dollar rises across the board
The U.S. Dollar has appreciated against most majors during Asian session. The EUR/USD plummeted in the first hours of Wednesday's Asian session dropping from level around 1.2580 to a low of about 1.2460. From that level the Euro has recovered slightly and is testing Feb 18 low at 1.2515 ahead of the European session time.
GBP/USD has also dropped although not as much as the Euro, the Pound dropped from 1.4060 to levels right above 1.40. There Cable looks weak and yesterday low at 1.3955 could be tested if the Pound does not manage to bounce strongly.
USD/JPY has continued consolidating during the Asian session after yesterday's break of 98.00 resistance level, at the moment the USD is trying to break what seems long term resistance level at 98.60/75 area