Forex Market Update: Dollar Gives Back, Japanese Yen Crosses Push Higher

The dollar remained weak in Asia though consolidated Tuesday’s losses against the EUR and GBP while losing further ground against AUD and NZD. Though USD/JPY extended losses in early Asian trading, dropping to 97.09 and triggering stops, USD/JPY bounced on broad JPY cross buying, rising to 97.69. The Nikkei reached eight-month highs, on higher commodity prices, ignoring the weak Japan machinery orders, with the rise in stocks fostering risk appetite and broad-based JPY cross buying from Asian and Middle East accounts. EUR/USD held a range between 1.4050-1.4100 most of the session until a late rally to 1.4102, while GBP/USD consolidated around 1.6295-43. Asian stock markets were broadly higher. U.S. treasury yields were little changed from NY levels as the market waits on the results from the U.S. ten-year auction later Wednesday. NYMEX crude remained above $70 after the rise in the EIA forecast and on reports of Nigerian militant attacks. Gold was underpinned by dollar weakness.