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Asia Recap: Kiwi, Aussie maintain bearish mode

FXStreet (Bali) - The Australian and New Zealand Dollar were both sold into new year lows during Asia, with the latter suffering the most losses, while the US Dollar kept strengthening across the board.

AUD/USD printed new lows at 0.8817 as a response to a sharp drop in the Kiwi, which this time acted as main catalyst dragging the Aussie. NZD/USD broke the 0.88 mark marginally, after selling hard over 60/70 pips after the RBNZ said that the Kiwi exchange rate unjustified and unsustainable. USD/JPY made intraday highs at 109.32 before heading back down towards 109.00. EUR/USD was pressured lower at 1.2765 on ECB's Dragi comments about the Central Bank's potential use of additional unconventional tools. GBP/USD slid due to broad-based USD strength, but finding solid bids clustered around 1.6315/20 area.

On the fundamental/macro space, there were some important events to take note of. Firstly, UK PM Cameron is recalling parliament on Friday seeking approval to take part in airstrikes against ISIS in Iraq. In New Zealand, the RBNZ published a media statement, noting that the NZ exchange rate level remains unjustified and unsustainable. Wheeler also said that unsustainablility is a factor in intervention feasability. ECB's Draghi was next to cross the screens, via Reuters, noting that the ECB is ready to use additional unconventional instruments within their mandate and even alter size or composition of unconventional interventions if necessary. Lastly, Glenn Stevens, Governor of the RBA, speaking in the Melbourne Economic Forum, reiterated that they are open on the use of macroprudential tools.

Main headlines in Asia

Japan Corporate Service Price (YoY) registered at 3.5%, below expectations (3.7%) in August

UK seeks parliamentary approval to join airstrikes against ISIS

RBNZ: Kiwi exchange rate unjustified and unsustainable

ECB's Draghi: ECB ready to use additional unconventional tools

RBA Stevens: Open to using macroprudential tools

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