Asia Session

The week in Asia ended on a relatively quiet note as the dollar remained elevated and markets consolidated ahead of tomorrows looming non-farm payroll data. Trading was subdued and range bound for the most part as traders spent the day squaring positions and taking profits ahead of the potentially volatile US data. The EUR/USD chugged along the 1.4530 path for the majority of the day albeit for a drop lower that came close, but never broke the surface of 1.4500. The quick wave of Euro selling came in reaction to comments out of the ECB that the strength of the single European Currency will be discussed this weekend at the G-7 meeting in Istanbul, Turkey.

The yen was well bid as Asian equity markets followed the Wall Street lead lower after poor ISM manufacturing and unemployment data. With the Nikkei softer by almost 2.5% the yen crosses tracked lower, with EUR/JPY falling about 60 pips to register a 3 month low near 129.63. GBP/JPY eased as well, dipping under the 142.00 level while pulling the GBP/USD with it as it fell about 70 pips to just shy of 1.5880. USD/JPY skid to 89.20 levels as Finance Minister Fujii seemed to tempt the market by stating that yen strength in fact would not be a discussion topic this weekend at G-7. A nice drop in Japanese unemployment data failed to spark any moves.

The profit takers were most notable in the Aussie and Kiwi dollars, as the higher risk pairs faced sellers for the greater part of the NY trade day. In Asia though, they hovered near the bottom of their ranges, with AUD/USD remaining just above the 0.8670 level for the day, and NZD/USD touching 0.7090 after a start above the 0.7150 ballpark.

All in all, the market await the pivotal US non farm payroll data due tomorrow, but the weekend holds intrigue as well with the G-7 meeting in Istanbul offering the potential of market moving statement at every turn. Have a nice weekend.

Upcoming Economic Data Releases (London Session) prior expected