Overall, the dollar continued to strengthen during the Asian session. For the first time in the last period, most pairs lost ground compared with the greenback, as the equity markets were trading in the red. Despite the recent gains, the dollar’s outlook remains on the downside as the Fed is preparing to buy $300 billion worth of Treasuries.
The Euro (Eur/Usd) closed lower for the third consecutive time yesterday. The pair declined 130 pips, being sold most of the time in the European and in the U.S. sessions. During tonight’s Asian session, the euro re-tested the low of the last day of trading, after it declined 45 pips.
The Pound (Gbp/Usd) rose more than 120 pips in the first few minutes of trading yesterday, but after that the pair struggled to trade in a defined direction. During the rest of the day, the pound just moved between TheLFB R1 (1.4655) and TheLFB R2 (1.4750), very similar with the yen. Tonight, in the Asian session, the pound declined 65 pips and re-tested the same support level.
The Aussie (Aud/Usd) declined for the first time in eleven days of trading. The pair rose initially higher in the overnight session, but moved lower during the rest of the day. In the Asian session, the aussie extended the decline seen the day before, and fell another 40 pips.
The Cad (Usd/Cad) traded between two well-defined support and resistance areas (1.2200 and 1.2260) during the overnight session but managed to break somewhere higher during the U.S. session. In the Asian session, the cad advanced 35 pips.
The Swissy (Usd/Chf) failed to break under the 200-day moving average for a fourth consecutive day. Other than this, the pair traded volatile and without a clear trend most of time during the previous day. In the Asian session, the swissy struggled to break above the high set on Tuesday.
The Yen (Usd/Yen) advanced sharply in the early part of the overnight session, but from there on the yen traded in a 70-pip range, between TheLFB R1(97.65) and R2(98.35). In tonight’s Asian session, the yen traded within exactly the same range.
The Japanese trade balance came in at -0.04 trillion as the country saw a surplus in February. This is the first time in the last five months that there has been a surplus seen. Exports declined a record 49.4 percent from one year ago as global demand for products diminish due to the current financial slump