Forex Market Update: U.S. Dollar Gives Back, Aussie and Kiwi Rise to Fresh Trend High

The dollar remained under pressure into the weekend, with both AUD and NZD extending trend highs at 0.7917 and 0.6288 respectively, and with USD-CAD revisiting the recent trend lows just under 1.1100. While AUD gains were aimed at excising a barrier option, the broad USD bearish tone was prompted by a Reuters headline that the S. Korean Pension Fund was looking to diversify out of the dollar. This followed a number of comments Thursday about the dollar, that BRIC nations would discuss the dollar dominance, and more warnings from PIMCO on the dollar as a reserve currency, that kept the buck under pressure. However, sterling had only an inside day within Thursday’s ranges and EUR once again failed to secure gains above 1.4000. USD-JPY fell from 96.80 to 96.25 on exporter sales and the surprise 5.2% rise in industrial output. Ahead of the weekend and month end however, trading was choppy. Asian stocks were mostly higher except Seoul with lingering N. Korean fears weighing on the market. Oil eased slightly under $65.00 after closing at the year’s high on Thursday. Treasury yields retreated slightly in Asia after soothing words from Fed’s Fisher who noted central banks still showed demand for treasuries; which was confirmed by Fed custody holdings data which hit another record high.