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Asian FX market wrap: majors trade sideways in quiet Asian session

  • Bernanke set to be reconfirmed as Fed chairman
  • US bankers set to lobby for softer reform package
  • Australian Q4 goods PPI -1.5% YoY
  • No major rates or policy change expected from BoJ
  • Asian regional stock markets regain early losses but still down 0.5% on average
  • Gold adds $9 to $1099/oz

There was some very early excitement in the market when JPY crosses jumped higher in early interbank trade after the Bernanke re-confirmation was all but assured but this gradually died down and we've had a very quiet session. Equity markets were down by almost 1.5% earlier in the session, following the Wall Street lead, but these losses have gradually been pared.

EUR/USD jumped early on the back of EUR/JPY buying but the pair has been unable to break above short term technical resistance at 1.4180. Range: 1.4135/73.

USD/JPY closed in NY at 89.90 but also jumped early on the Bernanke talk. The session high of 90.33 was made in early interbank trade. Heavy stop-loss buy orders are anticipated on a break above 90.65. Range: 89.84/90.33

The GBP has been quiet also, mainly following the EUR/USD around. The cross is sitting below decent resistance at 87.90 and stops are anticipated on a break above 88.00. Real money bids are seen in the cable close to 1.6000. Range: 1.6092/1.6136.

The AUD has been slightly more volatile than the others with AUD/JPY again being the main driver. Range: .9015/76.

Markets: Nikkei -0.3%, HK -0.5%, Kospi -0.3%. Gold +0.9% at $1099/oz