Turkey sent shockwaves around the world as it decided to raise its lending rates to 12%. The move was primarily aimed at reviving the value of the Turkish lira, which fell by as much as 5% in January. Prior to the increase in rates, the previous figure was at 7.75%. The country's decision came as a surprise as most markets only expected an increase to 10%.
The effect of the decision was almost immediate, with the market taking a risk on attitude at the moment. The AUD/USD pair, for example, saw a quick spike in its value at the opening of today's Asian trading session. It returned to the 0.88 area after spending much the latter part of yesterday's session below that level. It is currently trading at 0.8789, with initial resistance seen at 0.8799, followed by 0.8821. Meanwhile, initial support is at 0.8713, followed by 0.8691.
The yen, on the other hand, went into trouble with the combination of Turkey's interest rate decision and the positive performance of the Nikkei.
As soon as the Asian session opened, the USD/JPY pair began to rise sharply and broke past the 103.00 area. It is currently trading at 103.34, with initial resistance seen at 103.40, followed by 103.66. Meanwhile, initial support is at 102.18, followed by 101.92.
The yen also suffered against the aussie early in today's session. After spending much of late yesterday's trading around the 90.30-90.40 range, the value of the AUD/JPY pair shot up when trading session began in Asia.
It is currently trading at 90.83, with initial resistance seen at 90.77, followed by 91.00. Meanwhile, initial support is at 89.12, followed by 88.90.
As for the EUR/USD, the pair opened lower at the Asian session, as it slid from the 1.3670 area to below the 1.3660 zone. It is currently trading at 1.3654, with initial resistance seen at 1.3695, followed by 1.3729. Meanwhile, initial support is at 1.3630, followed by 1.3596.