Overall, the Asian sessions lacked momentum nor achieved any real volumes for a second consecutive day. The majors advanced against the dollar in the last day of trading, but the moves could not find a follow-thru in the Asian session. It is very likely that investors will be back at their trading desk for the London open, jumping over the current session.

The Euro (Eur/Usd) gained 180 pips in the last day of trading, and broke above two important resistance levels during the U.S. session. First, the 1.2750 resistance came down, shortly followed by the 20-day moving average. In the Asian session, the euro moved very little.

The Pound (Gbp/Usd) remains trapped between the 20 and the 50-day moving averages, after the pair bounced off the support and resistance levels all day long. The pound closed the day forming a small doji-bar, suggesting the market’s indecision over in which direction to break. During the Asian session, the pound almost came to a standstill.

The Aussie (Aud/Usd) closed the last day of trading slightly above the 20-day moving average. This is the first time the aussie pulls this move, after it struggled for a few days to break the resistance area. In the Asian session, the aussie traded mostly flat, above the same 20-day moving average.  

The release of the Australian Wage Price Index showed that it rose 1.2 percent this quarter. This is above analysts’ expectations for a 0.9 percent increase. The trend estimate for construction work completed rose 2.6 percent in December of 2008 while the seasonally adjusted estimate came in at 1.7 percent. This comes after a strong revision higher of the September quarter, from 4.4 percent to 5.5 percent.

The Cad (Usd/Cad) declined another 100 pips yesterday, falling near the 20-day moving average. The price action of the last few weeks showed that the cad could not break free from the swing area formed by the 20 and the 50-day moving averages, even though it had some strong trends recently. In the Asian session, the cad tested above the same support level, the 20-day moving average.

The Swissy (Usd/Chf) fell 90 pips in the last day of trading, and pared the gains seen on Monday. During the intra-day session, the swissy fell 160 pips at one point, testing the 100-day moving average. In the last period, the swissy traded in a wide range, as the pair looks unable to break decisively anywhere.

The Yen (Usd/Yen) rose almost 230 pips yesterday, the most in a while. Also, the yen reached the highest point since the end of November, helped by the positive close down on Wall Street. In tonight’s Asian session, the yen shed some pips, but the outlook remains on the upside.

The trade balance in Japan has plummeted by 45.7 percent from one year earlier. This is after a 35 percent fall the previous month and is the sharpest decline seen since 1980. The gross domestic product in Japan shrank an annualized 12.7 percent last year.