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Session Recap: Aussie off lows, Kiwi hammered; Euro buyers await ECB

Both the Australian and New Zealand Dollar were the main movers in Asia, with the latter being the most severely punished after a dismal jobs report, in which a cut back in the jobless rate to 6.9% vs 7.1% came accompanied by news additional data suggesting the fall was entirely caused by low participation levels, down to 67.2% v 68.5% exp. Additionally, employment growth stood at -1% QoQ, well below the 0.4% rise expected.

On the Australian Dollar domain, just like the Kiwi, the Aussie also went through an initial head fake, after the Australian jobs report raised more questions than answers, with the employment change up 10.4K in Jan, although all due to part-time jobs as full-time ones were reduced by 10K, indicating "employers are less willing to commit on long term hiring, either due to activity slowdown, or lower confidence about the Australian economic outlook going forward" FXstreet.com fundamental team noted. The Australian Dollar, however, ends the Asian session having recovered some ground.

Across the rest of the G10 currency pack, the Euro continues to trade heavy pressing against key support at 1.3470/80, while the Japanese Yen seems to start gaining some upward traction with a feeling in the air that the rally in Yen crosses is reaching true levels of exhaustion, with recent volatility signaling evidence of parabolic price activity. The USD stood in the middle.

Main headlines in Asia (in chronological order)

- Signs of Capitulation in USD/JPY

- Wall Street closes mixed after recovering early losses

- NZ jobs figures very poor; Kiwi tumbles after head fake

- USD/JPY: Short-term hedge fund strategy

- Who will be the next BOJ governor? Yen to weaken if academic - Nomura

- Aussie heaviness as worrying as Aus full-time jobs lost

- Yen crosses still easing lower

- Japan Machinery Orders (YoY) down to -3.4% in Dec from 0.3% / (MoM) falls to 2.8% vs 3.9%

- AUD/USD short-term bias negative, even for Aussie bulls ANZ bank

- AUD/USD short-term bias negative, even for Aussie bulls ANZ bank

Bloomberg article: The Dark Side of Japan’s Creating Inflation

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