ASIA FX overnight

USD rose as yields steadied after a successful 7-year Treasury auction. USD traded around 111.82,
upper band of cloud, most of the afternoon while AUD losses mounted with crude despite gains in copper futures.

USD/JPY trading sideways amid modest pre-holiday weekend flows
with no clear near-term direction. USD corralled of late between the lower and upper bands of the current Ichimoku Cloud, with topside resistance at 112.04, the conversion line/cloud top. The pair continues to follow swings in U.S. yields, which were dragged around by crude flows throughout the session. Offers are in place above 112.00, extending to 112.15 and beyond, traders said.

AUD/USD traded heavy throughout the session, dragged down by the rout in crude. Pair risking upward momentum with Thursday’s price action failing to challenge multiple DMA resistance, beginning with
0.7524, the 50-DMA. A sustained close back below 0.7400 will re-engage bears and likely build momentum for the long-term downtrend since mid-March to resume. Offers above 0.7520.

NZD/USD lower, though outperforming its USD bloc peers; a third successive close below 0.7055 100-DMA resistance may encourage a short-term selloff toward 0.6966, the 50-DMA.

Jr Trader Alexander Kumanov

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