Early morning gains by the Japanese yen were hastily erased as local investors helped to push risk skyward, sending the crosses screaming to fresh session highs merely 3 hours into the day.
EUR/JPY’s rollercoaster ride hits it low of 125.20 out of the gate, but yen selling out of Japan helped to push the pair over the 126.10 level as the day wore on. All crosses followed, with the GBP/JPY covering a 120 pip move to 143.80, and the CAD/JPY sailed over 80 pips to a 94.25 peak, but the AUD/JPY was the pair to snap records, posting an eighteen month high at 87.50. USD/JPY capped a 70 pip move to highs over 94.25, putting the pair closer to some stiff resistance at the 95.00 big figure. Traders showed the BOJ rate decision no credence as the bank kept rates on hold at 0.10% once again as was almost written in stone.
The EUR/USD remained soft in Asia, with the continuing concerns of Greek sovereign debt once again the culprit. With Greek bond yields widening on top of talk that the government is trying to renegotiate its current aid plan with the IMF, traders remained cautious, if not flat out spooked. The IMF is currently on its way to the troubled nation in order to go over the Greek “books”. The EUR/USD was near 1.3370 lows as the day came to a close, and the EUR/GBP was skimming along 0.87650 two month lows. GBP/USD remained lofted near 1.5250 on the back of the EUR/GBP weakness. Elsewhere, the AUD/USD remained near its 0.9285 highs, which represent levels not seen since January of this year. Parity in the USD/CAD was achieved earlier in NY and was maintained in Asia at levels centered on the 0.9995 mark.
Tomorrow, Asian data will monopolized by the release of Australian employment change and unemployment rate.