\n\tBy Chris Tedder, Research Analyst FOREX.com<\/p>\n
\n\tMost of the action was centred<\/span> on the yen and oil. Initially, it appeared investors were returning to JPY<\/span>, but USDJPY<\/span> failed to push through 80.00 and later rose beyond its overnight high. Overall, it appears investors are choosing USD over JPY<\/span>. Oil slowly climbed higher throughout the session as investors brought it off its lowest level since mid-2011. On the upside, US Oil may find some resistance around 80.00. But, overall, we think there may be more negative sentiment in-store for risk assets, thus investors may have to wait a while for a sustained recovery in price of oil.<\/p>\n \tElsewhere, it was a very quiet day for investors in Asia as they digested the overnight reality check for the market. Some risk assets managed to claw back some of their overnight losses – categorised<\/span> by very cautious price action. AUDUSD<\/span> struggled to push through its 25% retracement<\/span> level stemming from its collapse in the European and American sessions. It was a similar story for the euro which failed to gain much traction against the dollar.<\/p>\n \tThere were no real headline data releases during the session. But we did see the release of NZ credit card sending figures, with a month-on-month increase of 0.4% – bringing the year-on-year figure to +3.9%. The kiwi, however, was consumed with overall risk sentiment and didn’t react significantly to the news. NZDUSD<\/span> was fairly flat for most of the session after utterly failing to break through 80.00 overnight and plunging to a low around 0.7850.<\/p>\n \tThe question now becomes: what is next for Asian markets?<\/p>\n \tRecent price action in Asia has largely been dominated by sentiment stemming from Europe and the occasional headline from the US and China. It is not hard to see why this is. The situation in Europe, and to a lesser extent China and the US, has infected the world’s financial markets like a virus, and the longer the crisis in Europe goes on the more the effects will be felt in Asia.<\/p>\n \tBefore the crisis started, countries within Asia were in a better position to those in Europe and America, having not been as effected by the financial crisis and benefiting from huge amounts of stimulus being pumped into the heart of the region – China. However, at the same time as the European debt crisis was unfolding Chinese officials were acting to rein in growth, thus there are significant fundamental hurdles for Asian assets to overcome. And, with no light on the horizon are Asian markets really in a position to recover?<\/p>\n \tOverall, given the threats facing Europe and the uncertainty surrounding the future health of the Chinese economy, we think it may be a while before risk assets in Asia can make a sustained recovery. After all, uncertainty can act as the biggest ceiling for price action.<\/p>\n \tForeign exchange and CFD<\/span> trading involve significant risk of loss and may not be suitable for everyone. You should make sure you understand the risks involved in Foreign exchange and CFD<\/span> trading, seek independent advice if necessary. To make an informed decision about these products, please refer to our PDS<\/span>\/FSG<\/span> and our full risk warning. This email contains confidential information belonging to FOREX.com and is intended solely for the addressees. The unauthorised<\/span> disclosure, use, dissemination or copying (either whole or partial) of this email, or any information it contains, is prohibited. FOREX.com assumes no responsibility for errors, inaccuracies, or omissions in these materials. FOREX.com does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. We respect your privacy. 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\n\tDisclaimer: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD<\/span> contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.<\/em><\/p>\n
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