May 21: Asian session
Asian shares fell for a fourth day. MSCI Asia Pacific Index slipped 0.1%. Nikkei 225 is down by 0.2%.
USD/JPY is once again testing the 200-day MA at 101.18. Yen strengthened after the Bank of Japan refrained from expanding stimulus and said it expects a moderate economic recovery to continue. In addition, US yield premium over Japan shrank before the release of the Fed’s meeting minutes.
AUD/USD dipped to $0.9220 before recovering by 18 pips. Australian dollar held its sharpest loss in 2 months after consumer confidence dropped and iron ore prices fell to the lowest since September 2012.
NZD/USD slid almost to $0.8550, the lowest this month. New Zealand’s dollar declined after Fonterra Cooperative Group Ltd. said whole-milk powder prices declined for a seventh auction.
EUR/USD remains in the $1.3700 area. GBP/USD is trading in the $1.8635 area.