We actually got some nice moves today in Asia with USD/JPY finally breaking out of its usual lackluster ranges on the final day of the fiscal year in Japan. USD/JPY posted an almost four month high just short of 93.60 as the yen lost ground to a surging Nikkei. With a wave of recent data out of Japan looking optimistic, the safe haven yen was abandoned for the sweeter nectar of the riskier Nikkei 225, which reached an 18 month high today in moderate trading. As could be expected, the yen was also sold in the crosses, pushing risk higher across the spectrum. EUR/JPY was close to gaining a big figure, but fell short by ten pips at its 125.30 highs. GBP/JPY was able to post a big figure move and some extra, as it moved from 139.80 to just near 140.95.
The EUR/USD remained moored close to 1.3385 lows today as the continued specter of Greece refuses to go away. Concerns of overzealous bank regulation in Ireland also kept the European currency under pressure. AUD/USD began the day in a promising fashion as it hit 0.9205, but disappointing retail sales and building approvals (-1.4% vs. 0.3% and -3.3% vs. 2.1% respectively), dropped the pair to 0.9140 in a matter of minutes. Eventual lows of 0.9138 were soon to follow. AUD/NZD dipped to 1.2881 after earlier highs near 1.2950. The poor data did little to diminish the hope of a 0.25% rate hike by the RBA next week.
Tomorrow will thankfully bring some more top tier data in Asia, including Japanese Tankan, Aussie Trade Balance and Manufacturing PMI out of China.