Overall, the Asian session retained some of the momentum seen in the U.S. session. The majors moved strong during the Asian trading hours, something that did not happen so often in the past; however, the last few days of trading were an exception, since the majors saw some very strong moves at this time of the day. Ahead, the calendar is light in the European session, but has some top tier releases scheduled in the U.S. session.

The Euro (Eur/Usd) had very strong momentum in the last day of trading, something that was extended in tonight’s Asian session. The euro sold lower in the early part of the overnight session, but recovered everything and gained some additional pips during the U.S. session. In tonight’s Asian session, the euro tried to break above the high of the last day of trading.  
The Pound (Gbp/Usd) was unable to pull a decent trade for a second consecutive day, on Wednesday. The pound traded volatile and in a small range, even though the majors moved relatively strong. In the Asian session, the pound rose 40 pips and broke above the 1.39 area, the high of the last two days of trading.

The Aussie (Aud/Usd) traded with weak momentum yesterday, the pair advancing only a small number of pips. The aussie fell somewhere lower during the overnight session, but eventually managed to strengthen during the late European session and during the U.S. session. In tonight’s Asian session, the aussie rose 50 pips and tried to break above the high of the last day of trading.

Employment in Australia increased by 1.8K for February which is above expectations of 20.6K decrease. Full time employment decreased by 53.8K to 7,664K while part time employment increased by 55.6K to 3,146K. The unemployment rate in Australia increased by 0.4 percent to 5.2 percent in February which is slightly higher than analysts’ forecasts of an increase to 5.0 percent.

The Cad (Usd/Cad) lacked clear direction in the last day of trading. The pair traded in large swings around the Asian open price, but did not decisively break anywhere. Since the beginning of the month, the cad trades in a 300-pip range, near the highest value touched in the last few years.

The Swissy (Usd/Chf) fell 60 pips yesterday, and managed to close under the 100-day moving average for the first time in the last period. During the Asian trading hours, the swissy extended the declines seen the day before, and fell another 40 pips. Soon, the swissy will run into the 50-day moving average.

The Yen (Usd/Yen) plunged 120 pips in the last day of trading. Most of the selling came during the late European session/early U.S. session, when the pair plunged 140 pips in just a few hours. In the Asian session, the yen fell another 70 pips, and broke under the low of the previous day of trading. 

The Japanese economy has shrunk by an annualized 12.1 percent pace during the last quarter due to lowered business spending and a loss of exports as the global recession takes hold. In the three months to end December 31st the Gross Domestic Product (GDP) contracted less than the 12.7 percent which was reported by the Cabinet Office today