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Asian recap: mostly quiet session, EUR/JPY attacks major resistance

FXStreet (Moscow) - The Asian session happened to be rather quiet. US Dollar obviously need some rest after a strong rally across the board, while investors need to take some profit off the table ahead of the two risk events of the week - ECB policy meeting on Thursday and US Non-Farm payroll numbers on Friday. New Zealand news dominated Asian macroeconomic headlines. The country published positive labour market statistics: the economy created 18000 jobs, thus the employment level increased 0.8% in the third quarter against 0.4% gains in Q2. The jobless rate fell to 5.4%. This is the lowest since the beginning of 2009. The news supported NZD/USD, though the overall market reaction was rather muted. HSBC China Services PMI decreased to 52.9 in October from 53.5 in September. Despite poor headline numbers, the details showed that the situation wasn’t as bad as one can imagine. The news discouraged kiwi and Aussie buyers, as both currencies reverted from Asian highs. BOJ officials were cited saying that last week's announcement of additional easing was meant to ensure it meets its price target. BOJ’s Head Haruhiko Kuroda claimed that monetary easing has been producing the intended effect. He cherishes hopes to raise inflation expectations towards 2% within his lifetime.

EUR/JPY  has been one of the big movers in Asia. The cross starter the day at 142.49 and reached 143.11 so far on the back of speculations that the ECB would not follow the BOJ’s lead and wouldn’t extend stimulus tomorrow. EUR/USD upside correction from new multi-year lows is also supportive for the cross. From the technical point of view, a sustained break above 143.00 can open the way towards April high at 143.47.

AUD/USD  touched 0.8761 resistance after having opened at 0.8734 in Asia, but the upside momentum proved to be short-lived as the pair has already returned to 0.8737/35 area. Australian AiG Performance index deteriorated in October (43.6 against 45.4 in September), but the news failed to produce any meaningful effect on Aussie/ The trading is rather slow and rangebound.

NZD/USD  touched the Asian high at 0.7841 before retreating towards 0.7816. The pair is trading with marginal gains on the day, but it is vulnerable to losses as bearish momentum is strengthening.

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