Browse: Home > Asian markets turn higher, risk appetite returns to the FX market
Tuesday, July 6, 2010
Forex Special Asian stocks had a late-energetic resurface to end in positive territory, after being dominated by a bearish tone most of the session. At first, growing concerns in economic growth limited any upside bias. The closure of the US market on Monday due to the Independence day helped to establish today's indecision.
However, a turnaround in Chinese stocks provoked a shift towards positive sentiment, buoying the rest of benchmark indexes. The mood-lifting effect resulted on a strong late rebound as investors shrugged off early worries to push prices higher.
In Australia, the ASX-200 ended 1% higher. The RBA rate decision came out as expected, thus keeping the rate steady at 4.5%. The Shangai Composite rose 1.60%, posting the best performer for weeks. The Hang Seng climbed 0.20%, the Nikkei 225 was up 0.75% while the Kospi increased by 0.55%.
In the Forex market, the rise in risk appetite translated into a boost of risk-related crosses against the US Dollar. After trading in tight ranges on lack of impetus, the turnaround favoured riskier assets such as the Cable or the Aussie.
EUR/USD recovered yesterday's lost ground to climb at 1.2555, following an intra-day low at 1.2480. USD/CHF strengthened further down breaking out 1.0600 to currently stay at 1.0585. GBP/USD pointed higher aftr a rapid acceleration sent the pair to 1.5175. USD/JPY had a strong rebound from lows and can be found approaching 88.00 level again. AUD/USD was revived after jumping to 0.8450 from an intra-day low nearing 0.8300.