Asia FX overnight: JPY, AUD and NZD fall as global yields reflate

28.06.2017 / 05:01

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USD/JPY rose amid cross buying and a rally in sovereign yields after somewhat hawkish comments by ECB's Mario Draghi. Spot tackled stops above the 100-DMA at 111.81, then ran through offers above 112,99, reaching a high of 112.47 before uninspiring comments from Fed's Yellen forced a retreat.

AUD/USD fizzled as higher European and U.S. yields weighted on carry trades, sending Aussie broadly lower during the New York session.

Spot continues to consolidate between 0.7555 100-DMA and 0.7625 congestion as quarter-end approaches, with the AUD supported near term by rising metal prices. Could see gains against the JPY should risk appetite remain healthy.

NZD/USD was also pressured by the rise in yields.

Spot fell to an 0.7266 intraday low amid an unwind of carry trades but remains on an upward path, having set higher lows and highs four days in a row. Only a solid break of 0.7200 would signal weakness.

Jr Trader Alexander Kumanov

Varchev Traders

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Asia FX overnight: JPY, AUD and NZD fall as global yields reflate

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