USD/JPY and the JPY crosses mostly consolidated in Asia with the focus again on AUD. This is not surprising given upcoming risk events including the ECB policy announcement and US GDP report tonight and tomorrow’s US non-farm payrolls data. USD/JPY traded 102.16-45, not much different than yesterday’s 102.24-67 range. A move up into the Tokyo fix was followed by a push back down and then a bounce. Options and options-related activity continue to matter with large 102.00, 102.50 and 103.25 expirations today and smaller strikes in between also going off. EUR/JPY similarly see-sawed between 138.83-139.18 with players here awaiting word from the ECB. GBP/JPY traded 167.28-76, AUD/JPY 92.22-61 and NZD/JPY 83.79-84.12. AUD/JPY was better bid with shorts in cover mode after the dip to the low following weaker-than-expected trade data. Expiring 92.75-strike options will likely see some selling interest ahead. Dealers are not sure whether recent JPY buy-backs will continue. Most do still believe however that JPY will resume moves down into or in the New Year.
EUR/USD and the EUR complex mostly consolidated ahead of tonight’s ECB policy announcement and ECB Pres Draghi’s press conference. No changes to policy are eyed but there is a small possibility of further liquidity enhancing measures. Mr Draghi’s comments will be followed closely, and especially his take on negative interest rates. EUR/USD traded a tight 1.3578-94 range. The bias is slightly up with specs eyeing stops above the 1.3620-30 resistance zone (1.3627 is Fibo 61.8% retracement of the 1.3833-1.3295 move). Bidding interest is eyed from ahead of 1.3550 and trails down to 1.3520-30, 1.3528 yesterday’s low. Stops are eyed sub-1.3520 and 1.3500. EUR/JPY see-sawed between 102.16-45 with some demand noted into today’s Tokyo fix. EUR/GBP flat-lined between 0.8293-98. EUR/CHF traded soggy but held between 1.2250-70. EUR/AUD saw a high of 1.5071 on fresh AUD sales post-trade data before falling back to 1.5002.