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Forex Market Update: USD/JPY Capped By Fiscal Year End Repatriation, EUR/USD remained in range
Friday, 27 March 2009 06:56:27 GMT  |  Geng Chen, DailyFX Research
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Further range trading and consolidation was the main theme once again for the Asian session, aside from USD-JPY which came under pressure from Japanese exporter and investor selling due to fiscal year end flows. USD-JPY, which was capped around 98.85 in early Asian trading, dropped down to lows of 98.22 as a result of the year end flows, but by all accounts, the size of selling remained smaller than had been anticipated. EUR-USD attracted a steady bid, rising from morning lows of 1.3528 to highs of 1.3585 but still remains well within the recent 1.3400-1.3700 trading range. AUD-USD continued to pivot around 0.7000 for the second session in a row with demand still strong but offset by aggressive Australian selling on rallies. Kiwi consolidated in a range of 0.5740-0.5800. Asian stock markets were mixed on the day with many markets giving up early gains into the afternoon. Oil was down from NY levels but remained supported above $53 as it has much of the weak in Asia. The HKMA has continued to intervene to stem HKD strength, as it has since last Friday. Intervention was also seen two weaken the THB. Traders are increasingly focused on next weekend's G-20 meeting and fears that the USD will become an increased focus along with the debate on USD reserves.

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