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14 Jan 2015
Asia Recap: Aussie in free-fall on massive copper selling
FXStreet (Bali) - The Australian Dollar was the main loser in Asia, with the Japanese Yen emerging as the currency benefiting the most from risk-off swings.
The rout in the commodity complex, with copper down more than 8% at one stage, led to a massive turnaround in Aussie price action. While AUD/USD initially popped up towards 0.8188 session high, the copper-induced selling caused a sharp 1+ cent move down towards 0.8077 low before a mild bounce.
USD/JPY continues to trade heavy, with Yen buyers underpinned by the Nikkei 225, down by 1.2% heading into the close. Market Pulse cited Masato Yanagiya, head of foreign exchange and money trading at Sumitomo Mitsui Banking Corp. in New York, saying: “If stocks continue to slump on the idea that low oil prices will become a risk to the U.S. or the global economy, dollar-yen will continue to fall. It’ll be easy for the yen to strengthen amid a flight to quality.”
The rout in the commodity complex, with copper down more than 8% at one stage, led to a massive turnaround in Aussie price action. While AUD/USD initially popped up towards 0.8188 session high, the copper-induced selling caused a sharp 1+ cent move down towards 0.8077 low before a mild bounce.
USD/JPY continues to trade heavy, with Yen buyers underpinned by the Nikkei 225, down by 1.2% heading into the close. Market Pulse cited Masato Yanagiya, head of foreign exchange and money trading at Sumitomo Mitsui Banking Corp. in New York, saying: “If stocks continue to slump on the idea that low oil prices will become a risk to the U.S. or the global economy, dollar-yen will continue to fall. It’ll be easy for the yen to strengthen amid a flight to quality.”