• NZD/USD +0.6%
• AUD/JPY +0.4%
• EUR/JPY +0.3%

NZD/USD

Watch For The Carry: The kiwi dollar was boosted during the session following a four session decline as commodity prices pulled back from yesterdayââ,¬â"¢s debacle.  The underlying currency was also bolstered in light of an ANZ report that stated commodity prices declined in the region to the lowest level in nearly a year and a half.  However, a lowered valued currency, which is expected in the overall market, is anticipated to cushion the blow the lower valuations have on productivity.  The notion additionally bolstered profit taking as bears pounded the currency pair on waning positive output in the near future for New Zealand.  Now with data clear out of way, traders will be focusing on the upcoming trade balance report due tomorrow morning.  Should the trade deficit widen, look for short term carry traders to reinitiate long positions in the underlying.

Rumorville: Light action as we enter the Asian session with bidding below the current spot at 0.6740, forming near term resistance.  Offers are comparatively placed above at 0.6800 with corresponding stops above at 0.6810/20 region.

AUD/JPY

Data Doesnââ,¬â"¢t Match Price: The currency cross was driven higher on the day in light of contrary data, leading to some confusion in the price action.  First and foremost, Australian employment conditions worsened as the jobless rate rose to the highest level in more than a year.  The climb to 5.3 percent now confirms that there is presently growing slack in the job force as output continues to slow in the region.  As a result, future interest rate hikes continue to be in jeopardy as their necessity thins.  Comparatively, consumer confidence in the Japanese economy was boosted, beating expectations by the consensus.  The reading for the January month rose to 49.5 from the previous 46.5 reading.  Although still below the expansionary 50 level, all sub indexes of the report vaulted higher and lends to previous sentiment that consumer interest continues to prop up the economy.  However, sentiment still remains that, regardless of optimism, consumer prices still are suggestive of deflation and continue to make this pair carry attractive.

Rumorville: Australian offers look to keep the major leg of the cross under pressure as they reside at 0.7420 and 0.7445/50, above the current spot.  Bidding for the Aussie is tight, keeping the support at current time of 0.7380.  Comparatively, Japanese yen bids are located at 118.20 with lower considerations at 118.

EUR/JPY

Monetary Statements Reign: EURJPY cross pair action was in similar tone to the AUDJPY flux as the same sentiment spilled in to the cross.  Although consumer sentiment rose in the Japanese region, market participants remain steadfast in their attention to statements by policy makersââ,¬â"¢ looking for consecutive increases in consumer prices.  As a result, further carry initiations followed as traders attempt to capture the zero interest rate policy offered by Bank of Japan officials.  Fluctuations look thinner as we move into the Asian session, with positions being cared for ahead of the overall household spending figures.  Should the report rise higher than expected, speculation by yen bulls could be expected as it confirms the underpinned strength in the current recovery.

Rumorville: Selling pressure looks to contain the underlying cross action in the asian session with considerable offers above the spot price at 142.30/40 region.  Subsequent and heavy considerations are above at 143.  Bids look to prop the cross in the near term with bids below at 141.50 with heavier considerations lower at 140.70-141 with corresponding stops below at 140.50/60.

Richard Lee is a Currency Strategist at FXCM.