Market Overview

ForexLive Asia Wrap 19 Nov 2012: USD/JPY Stop Run & KO Option Trigger

ForexLive Asia Wrap 19 Nov 2012: USD/JPY Stop Run & KO Option Trigger

Very slow on the economic data release front in Asia today. New Zealand kicked off with:

October BNZ-BusinessNZ PSI at 57.4 for October (vs. prior month's 49.6 for September)
Q3 PPI Inputs at minus 1% (vs. Q2 at +0.6% and market forecast at +0.6%)
Q3 PPI Outputs at minus 0.9% (vs. Q2 at +0.3% and market forecast at +0.2%)
Q3 Capital Goods Price Index +0.3% (vs prior for Q2 at +0.6%)

Later we got:

Q3 GDP from Thailand +3% YoY, forecasts were higher, up to +3.6%. More here.

The tone was positive going into the Asian open today, with Friday's soothing remarks on the Fiscal Cliff helping equity markets and ‘risk', as well as generally positive remarks surrounding Tuesday's scheduled IMF/Eurozone Finance Ministers meeting (despite the still-vexed questions of extension to 2022 favored by the Euro zone group vs 2020 favored by the IMF).

AUD, EUR and GBP all traded higher in early going (the NZD and Loony were positive, but lagged), and continued through the Tokyo morning and into the afternoon.

USD/JPY was a sharp mover again, higher in the morning through the barrier option interest at 81.50 to 81.57/59 just after the Tokyo open, before long liquidation saw it settling lower around the week's opening level at 81.20/30. Talk now is 81.75 and 82.00 Knock-out options to be dealt with, while strong bids are said to be present 80.90 to 81.00.

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

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