Overall, the dollar continued to advance during the Asian trading hours, but until now the majors saw only reserved moves, and low momentum. The dollar gains were led by risk-aversion, denoted by the negative equity markets. Ahead, for the first time this week, the European session has two releases scheduled. However, the two are still unlikely to influence the market.
The Euro (Eur/Usd) bounced off the 20-day moving average in the early part of Tuesday’s trading session, and fell 120 pips. Most of the declines came during the European trading session, as the U.S. futures were trading in the red. During tonight’s Asian session, the euro re-tested Tuesday’s lows, 40 pips under the session opening price.
The Pound (Gbp/Usd) and the cad were the only major pairs that managed to advance compared with the dollar on Tuesday. However, the pound’s gains were rather modest, advancing less than 50 pips on Tuesday. The pair still has to face a significant resistance ahead, in the 1.50 area, which has held the pair back since January.
The Aussie (Aud/Usd) is once again trading under the 0.7200 support level, after it fell 120 pips on Tuesday. The downtrend was extended during the Asian trading hours, when the aussie fell another 40 pips.
The Cad (Usd/Cad) declined on Tuesday for the sixth consecutive day, reaching the lowest valuation since late January. The pair fell 70 pips, but even more importantly it managed to break under the 1.22 support level. In the Asian session, the cad gained 20 pips.
The Swissy (Usd/Chf) advanced as much as 120 pips during the intra-day session on Tuesday, but shed half of those gains throughout the U.S. trading hours. During tonight’s Asian session, the swissy opened above the 20-day moving average and gained 20 pips.
The Yen (Usd/Yen) continued to decline in the last day of trading, on Tuesday, as the market was driven by risk-aversion. The yen shed another 140 pips, and fell down to the 98.80 support level. Additionally, around the same area the 20 and the 200-day moving averages meet. During the Asian session, the yen struggled to break the support level.