Australian Dollar Drops; Yen Climbs As Ukrainian Forces Attack Rebel-held Areas In Donbas
The Australian dollar fell against its major counterparts in the
Asian session on Thursday, while the Japanese yen advanced, as
geopolitical concerns escalated after Ukraine's armed forces fired
grenades and mortars on the territory of Luhansk People's Republic
in eastern Ukraine.
Ukrainian forces fired at settlements of Sokolniki, Zolote-5,
Veselenkoe and Nizhnee Lozovoe around 5:30 a.m. Moscow time. These
four territories are located in Luhansk Oblast in the Donbas
region, an area recognized as a part of Ukraine but run by Russian
The attack violates the ceasefire regime in accordance with the
Minsk agreement, which bans firing and using weapons in and near
populated areas in Donbass.
Earlier in the day, the U.S. said that Russia has increased the
number of troops near Ukraine's borders, a claim rejected by
This followed comments by NATO Secretary General Jens
Stoltenberg that Russia was continuing to send troops to what is
now the biggest concentration of forces in Europe since the cold
The aussie dropped to 1.5847 against the euro, 0.7150 against
the greenback and 0.9099 against the loonie, off its early
multi-week high of 1.5773, 1-week highs of 0.7215 and 0.9158,
respectively. The aussie may face support around 1.62 against the
euro, 0.70 against the greenback and 0.88 against the loonie.
The aussie weakened to a 3-day low of 1.0728 against the kiwi
and a 2-day low of 82.33 against the yen, down from its prior high
of 1.0774 and a 1-week high of 83.34, respectively. The aussie is
seen challenging support around 1.06 against the kiwi and 80.00
against the yen.
The yen appreciated to 3-day highs of 115.11 against the
greenback and 130.41 against the euro, from its early lows of
115.54 and 131.50, respectively. The next possible resistance for
the yen is seen around 112.00 against the greenback and 127.5
against the euro.
The yen advanced to 2-day highs 156.11 against the pound and
124.74 against the franc, after dropping to 157.06 and a 6-day low
of 125.40, respectively in early deals. The yen is poised to find
resistance around 153.00 against the pound and 119.00 against the
The yen recovered from an early low of 91.03 against the loonie
and touched a 2-day high of 90.43. Next key resistance for the yen
is seen around the 88.00 level.
The yen edged up to 76.69 against the kiwi, up from a 6-day low
of 77.41 seen earlier in the session. The yen may test resistance
around the 74.00 level, if it rises again.
Looking ahead, U.S. weekly jobless claims for the week ended
February 12, housing starts and building permits for January are
due out in the New York session.
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