Forex News

Fed Bernanke's comments vs USD weakness lack teeth, says Daiwa Institute of Research chief FX analyst Yuji Kameoka. "This is probably nothing more than verbal intervention," with probability of action very low. Reason: monetary authorities in U.S., Europe not yet steering policy in ways which supportive for USD, meaning that even if they intervene to buy USD, impact - if any - could fade fairly quickly. Bernanke says further USD weakness is not good as could fuel inflation, "but I don't think he meant to signal that intervention is possible at current (dollar) levels," says Kameoka. (TAN)

USD/JPY volatilities almost unchanged at 11.6%/11.9% from 11.5%/12.0% NY overnight, as impact from reports on Lehman Brothers, Fed Bernanke's comments overnight cancel each other out, leaving market sentiment neutral, options dealer says. Adds players waiting for spot moves after Friday's non-farm payrolls data - vols a bit high when considering current spot range, so if no FX fluctuations after jobs data, vols may fall toward 10.5%.(TMO)

AUD/USD dips below 0.95 in early Asian trade as pair hits technically key 0.9511 level, National Australia Bank senior currency strategist John Kyriakopoulos says; has since bounced back but risks are to downside leading into 1Q GDP due 0130 GMT. "I just get the feeling it's looking a little bit heavy." Says with pair at 0.9650 "pretty much all the good news was in the currency and everyone was coming out with parity calls and it only had one way to go, which was down." Immediate support for AUD/USD 0.9470-0.9480; last 0.9502.(SRH)

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