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Forex - Japanese Currency Slightly Higher In Asian Trading [USD/JPY]

3/26/2008 12:52:41 AM Wednesday in Asia, the Japanese yen traded slightly higher against its major counterparts.

According to data released today by the Finance Ministry, Japan’s February trade surplus increased 0.9% over one year earlier. The increase was the first in four months, but came in below economists’ forecasts. The February surplus increased to 970 billion yen (US$9.69 billion), compared to analysts’ estimates of a 16.8% increase to 1.123 trillion yen.

Additionally, Japan’s corporate service price index increased 0.3% in February. The index reading for February was 94.1 percent compared to 93.8 percent for January.

The yen that hit a 6-day low of 99.59 against the franc in late Tuesday trading strengthened to 99.07 during early Asian deals on Wednesday. The franc-yen pair was worth 99.42 at yesterday’s close.

Against the dollar, the yen reached 99.69 by about 8:35 pm ET, up from 99.98 hit late yesterday in New York.

The dollar declined as investors became worried again about a possible recession in the US following disappointed housing and consumer confidence data.

The Conference Board’s Consumer Confidence Index plummeted to a 5-year low in March, data released showed yesterday. The Consumer Confidence Index fell 12 points in March to 64.5, a level not seen since the eve of the Iraq War and nine points lower than economists expected.

Also, the S&P/Case-Shiller index showed that home prices in 20 metropolitan areas fell 2.4% in January from December, following a 2.1% drop in December. Prices were down 10.75 from a year earlier.

At about 9:55 pm ET, the yen hit as high as 155.97 against the euro and 199.93 versus the pound. The euro-yen and the pound-yen pairs were worth 156.35 and 200.54, respectively at yesterday’s close.

Currently, the yen is trading near 99.96 per dollar, 156.20 against the euro, 200.33 versus the pound and 99.24 against the franc.

The German March IFO business climate indicator, Euro-zone current account and industrial new orders, French and the Italian business confidence reports are expected in the upcoming European session.

The US durable goods orders and the new home sales reports-both for the month of February have been slated for release in the New York session.

Forex - US Dollar At New Low Against Taiwan Dollar [USD/TWD]

3/26/2008 12:46:25 AM Wednesday morning in Asia, the US dollar fell to a new multi-year low against the Taiwan dollar. The dollar also slipped to new multi-day lows against the currencies of Singapore and Malaysia.

But the US dollar gained against the South Korean won, Indonesian Rupiah, Philippine peso, Indian rupee and the Hong Kong dollar. The dollar rose to a new multi-day high against its Indonesian counterpart.

The US durable goods orders, new home sales and speeches by few fed officials are the major events expected in the New York session.

The US dollar fell sharply against its Taiwan counterpart in early Asian deals on Wednesday. The pair touched 29.9070 at about 11:05 pm ET, first time the pair dropped below 30 level. As of now, the pair is worth 29.98, compared to 30.0870 hit late yesterday in New York.

The dollar has been in a downward channel against the Taiwan currency since March 17 when it touched a new multi-day high of 30.9965. Since then, the US dollar has lost around 3.51%.

The US currency ticked down against the Malaysian ringgit in early Asian deals on Wednesday. The pair fell to a 2-day low of 3.1815 by about 12:00 am ET, which may be compared to Tuesday’s New York session closing value of 3.1975. Currently, the pair is trading near 3.1851.

In early Asian trading on Wednesday, the dollar slipped against the Chinese Yuan. At about 10:05 pm ET, the pair touched 7.0276, down from yesterday’s North American close of 7.0529.

People’s Bank of China has set today’s central parity rate for the dollar-yuan pair at a record low of 7.0252. The pair is allowed to strengthen or weaken 0.5% from the parity rate.

The Greenback-Hong Kong dollar pair reached 7.7849 at about 9:55 pm ET, gaining from yesterday’s session close of 7.7780. Currently, the greenback buys 7.7834 Hong Kong dollars.

Against the Philippine Peso, the dollar gained ground in early Asian deals on Wednesday. The dollar-peso pair that closed yesterday’s trading at 41.45 rose to 41.6750 at 10:30 pm ET. As of now, the pair is quoted at 41.66.

According to a data released today, the Philippines posted a trade deficit of US$756 million in January, compared to a trade surplus of US$83 million for the same month a year earlier, with increases in imports more than offsetting growth in exports. Merchandise imports for January increased 27.7 percent to $4.98 million while exports increased 6.1 percent to $4.23 billion. The US currency extended its yesterday’s downtrend against the Singapore dollar in today’s early Asian deals also. At about 9:55 pm ET, the pair touched 1-week low of 1.3790, compared to 1.3808 hit late Tuesday in New York.

The Singapore industrial production data for February has been scheduled for release today. Analysts expecting a 10.2% increase on year - slightly slower than the 11.7% annual growth seen in January.

On the other hand, the greenback spiked higher against the Indonesian rupiah in today’s early Asian deals. At about 10:00 pm ET, the pair reached 0.9196, which set a 6-day high for the dollar. The dollar-rupiah pair that closed yesterday’s trading at 0.9185 is now worth 0.9195.

The Greenback edged up against the South Korean won in early Asian deals on Wednesday. The pair that closed yesterday’s deals at 976.25 hit a high of 987.95 by about 11:30 pm ET. Currently the pair is trading near 985.15.

The US currency also showed mild strength against its Indian counterpart during Wednesday’s early deals. The dollar-rupee pair is now trading near 40.16, compared to yesterday’s closing value of 40.1050.

Forex - New Zealand Dollar Weakens Against Majors [AUD/NZD]

3/26/2008 12:12:20 AM Wednesday in Asia, the New Zealand dollar slipped against its major counterparts. The kiwi reached 2-day lows against the euro and the aussie during this time.

Consumer confidence in New Zealand dropped to its lowest level in a decade during the first quarter of 2008. The Westpac-McDermott Miller quarterly consumer sentiment index declined to 96.5 in March from a reading of 110 in December. It was the lowest reading since June of 2000.

The New Zealand dollar ticked down against the US currency in early Asian deals on Wednesday. At about 11:10 pm ET, the kiwi-greenback pair touched 0.8030, down from yesterday’s closing value of 0.8072. If the pair drops further, it may test near term support around the 0.796 level.

In early Asian deals on Wednesday, the NZ currency declined versus the Japanese Yen. The pair that closed yesterday’s New York session at 80.71 fell to 80.16 by about 10:10 pm ET. On the downside, 79.00 is seen as the next target level for the NZ currency in the near term.

According to data released today by the Finance Ministry, Japan’s February trade surplus increased 0.9% over one year earlier. The increase was the first in four months, but came in below economists’ forecasts. The February surplus increased to 970 billion yen (US$9.69 billion), compared to analysts’ estimates of a 16.8% increase to 1.123 trillion yen.

Additionally, Japan’s corporate service price index increased 0.3% in February. The index reading for February was 94.1 percent compared to 93.8 percent for January.

The NZ dollar also trended lower against its European and Australian counterparts in today’s early Asian deals. The kiwi reached 2-day lows of 1.9474 per euro and 1.1415 against the aussie, compared to yesterday’s close of 1.9397 and 1.1374, respectively. The next downside target level for the kiwi is seen around 1.954 versus the euro and 1.144 against the aussie.

The German March IFO business climate indicator, Euro-zone current account and industrial new orders, French and the Italian business confidence reports are expected in the upcoming European session.

The US durable goods orders and the new home sales reports-both for the month of February have been slated for release in the New York session.

source: RTTNews