Wed, 13 Apr 2011 04:07:00 +0200

Forex: High yielding currencies retreat on Japan aftershocks

FXstreet.com (Barcelona) - The US Dollar is trying to recoup losses after the battered currency was off to a poor start in Asia, where it quickly headed south against the Australian Dollar and more moderately against the Euro. However, a new aftershock hitting north Japan led to an abrupt halt of the risk on atmosphere.

The absence of follow through on the breaks due to the quake in Japan led to a strong Dollar bounce in the past hour, sending quotes versus the Euro at 1.4460 from a session high at 1.4493, while taking the Aussie back below 1.0450 following a failed attempt to regain 1.0500.

Euro/Dollar is now faced with support around 1.4460, a break past last hour candle at 1.4454 may fuel the Dollar with further s/t momentum to try 1.4435 ahead of next big support at 1.4380. Aussie/Dollar meanwhile has next strong support at 1.0400/10 vicinity.

Nikkei 225 also entered into the red after showing iintial signs of a mild recovery on the back of its prior's day sharp falls.