With Japan out on holiday and the big moves flushing out the market earlier in New York, traders kept an ear out for news amidst a mostly quiet session in Asia. After a drop to new yearly lows near 1.3115 in the EUR/USD after an S&P downgrade of Spain, the pair remained centered near the 1.3200 mark. The session began early with the RBNZ rate decision, which although in line with expectations at 2.50%, hampered the New Zealand currency with talks of a more modest tightening policy ahead. The NZD/USD moved from 0.7205 to a quick 0.7230 high and subsequent 0.7170 within a matter of minutes. The pair eventually dropped a further 20 pips to post lows on the day before a bounce to 0.7165. The moves in AUD/NZD were a bit more drastic as the pair touched a quick 1.2785 before a high just north of the 1.2900 level right after the data was released out of New Zealand. AUD/USD was stale near the 0.9250 region. Both the yen and yen crosses were flat on the session.

As mentioned the Euro enjoyed a few hours of smooth sailing in Asia after yet another brutal day of sovereign debt concerns that have traders listening to the news rather than looking at fundamentals. Today's 35 pip range must have been soothing as opposed to the NY range that was just over 151 pips. In the mean time traders continue to look at ballooning Greek bond yields and listen for any hints of any further downgrades from the ratings agencies. For the near term, currency moves will go hand-in-hand with the fate of European sovereign debt.

Upcoming Economic Data Releases (London Session) prior expected

4/29/2010

7:55

GE

Unemployment Change (000's)

APR

-31K

-10K

4/29/2010

7:55

GE

Unemployment Rate (s.a)

APR

8.00%

8.00%

4/29/2010

8:00

EC

Euro-Zone M3 s.a. (YoY)

MAR

-0.40%

-0.10%

4/29/2010

8:00

EC

Euro-Zone M3 s.a. 3 mth ave.

MAR

-0.20%

-0.20%

4/29/2010

9:00

EC

Business Climate Indicator

APR

-0.32

-0.12

4/29/2010

9:00

EC

Euro-Zone Indust. Confidence

APR

-10

-8

4/29/2010

9:00

EC

Euro-Zone Consumer Confidence

APR F

-15

-15

4/29/2010

9:00

EC

Euro-Zone Economic Confidence

APR

97.7

99.4

4/29/2010

9:00

EC

Euro-zone Services Confidence

APR

1

3

4/29/2010

 

EC

ECB's Trichet Speaks in Munich

29-Apr