Sunday, April 1, 2012

Safe-haven yen eased on Monday, Aussie jumps

The Australian dollar soared nearly a full U.S. cent to $1.0441, having peaked at $1.0470, after a report on Sunday showed activity in big Chinese factories hit an 11-month high in March.

traders expect the Aussie to consolidate in the $1.0410/70 range before another attempt on the upside. Against the yen, the Aussie climbed to 86.50, pulling well away from last week's trough around 84.60.

The yen could also resume its downtrend as support from Japan's fiscal year-end flows have all but fizzled. The low-yielding Japanese currency is still seen as a funding currency for carry trades.

 The dollar held firm against the yen, having benefited on Friday from higher Treasury yields in the wake of the upbeat spending data. It stood at 82.83 versus 82.78 in New York. Reuters link


Forex Insight Team

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