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Forex - Dollar rises in Asia as traders scale back risk appetite

Published 01/24/2013, 09:33 PM
Updated 01/24/2013, 09:34 PM
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Investing.com - The U.S. dollar was spotted higher against most of its major rivals in Friday’s Asian session after traders were seen scaling back risk following an ebullient day for equities in the U.S. that saw stocks there again rise to their highest levels since 2007.

In Asian trading Friday, EUR/USD fell 0.14% to 1.3358 as traders booked profits in the pair after it settled up 0.39% at 1.3371 during the U.S. session. The pair was likely to find support at 1.3265, the earlier low, and resistance at 1.3398, last Friday's high.

EUR/USD was boosted by some favorable regional data points. Germany’s manufacturing purchasing managers’ index rose to 48.8 in January from 46.0 in December, outpacing analysts' calls a 46.8 reading.

Germany’s service sector expanded at its fastest pace in over a year, with the services PMI rising to 55.3 for January compared with 52.0 in December. Germany is the Eurozone’s largest economy.

Meanwhile, the Eurozone manufacturing PMI rose to a 10-month high and hit 47.5 in January from 46.1 in December, while the services PMI came in at 48.3 from 47.8 in December. Both figures beat market analysts' forecasts.

JPY/USD popped 0.13% to 90.46 after Japan’s Statistics Bureau said consumer price inflation fell to -0.2% in December from -0.1% in November. Analysts expected a December reading of -0.2%. The report shows Japan is still dealing with deflation and it could provide the impetus for the Bank of Japan to engage in additional asset-buying before 2014 as it said it would earlier this week.

Elsewhere, GBP/USD fell 0.04% to 1.5782 while USD/CHF surged 0.13% to 0.9302. With traders taking some profits in oil futures during the Asian session, USD/CAD added 0.01% to 1.0028.

AUD/USD was flat at 1.0452 indicating traders may have already moved past the most recent solid Chinese economic report, delivered yesterday. China’s preliminary HSBC manufacturing purchasing managers’ index improved to 51.9 in January, a two-year high, from a final reading of 51.5 in December.

NZD/USD fell 0.15% to 0.8369 while the U.S. Dollar Index added 0.1% to 80.11.


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