• NZDUSD +1.3%
• AUDUSD +1.2%
• USDJPY -0.6%

NZD/USD

Commodities and Profits Boost Kiwi: Kiwi dollar was bid at the open rising on higher commodity prices and exacerbated upside on a short squeeze from yesterdayââ,¬â"¢s action. With gold and other base metals higher on the session, traders bid the Kiwi in relation to the Aussie setting stops above the 0.6335 level. Additionally underpinning Kiwi preference on the day was cross bidding as the market picked up NZDJPY positions propping up major leg demand. As a result, buying looks to continue to just below the session high of 0.6350 as we head into the close and the underlying consolidates before the weekend close. Comments by New Zealand Minister Sutton also looks to cap gains as the policy maker hinted at a dovish central bank bias by mentioning a preference for a lower currency. Although not expected to grant the direct wish, the comments are considered to have heavy weight in next weekââ,¬â"¢s central bank decision. Governor Alan Bollard is expected to keep rates at the current record rate of 7.25 percent. Technically, a late afternoon rally past the high would see sellers eyeing the even figure above.

AUD/USD

Gold and Base Metals Break To New Highs: Aussie bidding was propped up by cross bidding of the AUDJPY for the majority of the session as a fresh uridashi issuance hit the market. With considerable buyers on dips, the heightened demand for Aussie denominations boosted the major leg. Additionally, higher commodity prices, namely copper and gold, bolstered Aussie demand taking the major to session highs in the afternoon trade at 0.7462. However, at this point, gains looks minimal at the close with heavy sellers at the 0.7480 level, protecting an option barrier set for next week. Should the sellers wane thin, buyers look top heavy above the 0.7500 figure with further option barriers at the 0.7550 and 0.7575 figures. Looking ahead, traders are anticipating next weekââ,¬â"¢s consumer price index figures. Anticipation runs high that the figures will push towards the upper band of the 2-3 percent target set by central bankers, boosting valuations on hike speculation.

USD/JPY

Political Visit Weighs on Yen Major: With most of the majors bid on the day against the greenback, the Japanese yen followed the same path as heavy selling emerged at the open. The move looked contrary to EURJPY cross action as a Riksbank allocation saw an 8 percent reduction boosting the cross. However, with notable selling at the 145 level, the action moved in favor of the yen major as institutions remained aggressive. Heading into the close, sellers continue to look for opportunities on upticks with bids losing steam at lower levels below the 117.50 and 117.00 levels. Further downside looks probably ahead of consolidation at the 116.50 level. Looking ahead, the G7 finance ministers meeting looks to place some pressure on the U.S. single currency at the Sunday open with speculation on the Chinese Presidentââ,¬â"¢s visit following not too far behind. First release up for the worldââ,¬â"¢s second largest economy looks to be consumer spending suggestive.

Richard Lee is a Currency Strategist at FXCM.