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Asia Recap: Antipodean currencies under pressure

FXStreet (Bali) - The Kiwi came under pressure in Asia, ending as the main laggard, while the Japanese Yen continues to see an increase in demand, allowing the battered currency to be the best performer.

AUD/USD traded under pressure from the get go, with the positive sentiment on Chinese easing proving short-lived, a win for the AUD bears as concerns now shift towards growth and low inflation in China; AUD/USD was paid as low as 0.8570 before consolidating near lows, with a very modest bounce.

NZD/USD was the main loser, with losses accelerating after the publication of the RBNZ inflation expectations, with the average one year inflation expectations at 1.59 pct, while two year expectations came at 2.06 pct, sightly lower than in previous readings, causing the market to intensify the NZD selling on expectations that the RBNZ may enjoy further room to remain on hold as inflationary pressures are projected to recede.

USD/JPY was offered outright since the start of Tokyo, with an initial spike above 118.50 being quickly rejected as export sales and further profit taking ahead of Japan's Dec 14 election overwhelmed buyers. The lowest was printed at 117.75, from where a bounce stalled at 118.20 before a retest of lows. The BoJ minutes failed to offer new insights, while a speech by Governor Kuroda reiterated same familiar issues (no Yen drivers).

Key headlines

BoJ minutes: Downward pressure on prices risks shift in deflation mindset

Kuroda: BoJ will maintain QQE for as long as needed

NZD/USD picks up bearish momentum

NZD/USD has seen sharper losses in the past 2 hours of trading, reaching intraday support at 0.7815/20, where a decent stack of bids is expected ahead of 0.78.
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Any retracements for USD/JPY will find support towards 117.00/30 - OCBC Bank

Emmanuel Ng, FX Strategist at OCBC Bank notes that a dimmer prognosis for the labor market and any retracement in USD/JPY pair is expected to find support towards 117.00/30.
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