Asia Recap: Aussie on free-fall mode, RBA/China headlines weigh

FXstreet.com (Bali) - We had to wait until late Asia to see the market moving, but once it did, well... it was an explosive one, sending the Aussie into fresh trend lows hit by a plethora of'AUD bearish headlines'

With no time to digest the approximately full cent (100 pips) lost on Thursday, the Australian Dollar had to suffer yet again another strong hammering, as the market didn't like headlines from the RBA talking down the currency, neither alerts being issued in China on credit risks in the coal industry.

With regards to the Japanese Yen, the news out of China caused the Nikkei 225 to sink into new lows (-2.31% as I type...) breaking Jan 14 lows, dragging with it the Yen crosses complex. Risk off trading prevails in Asia.

Ahead of Europe, the British Pound will be the currency to keep an eye on, as the market focuses on BoE's Carney speech after comments made to the FT suggests risks for a change in language toward forward guidance. Yesterday, he said that when monetary policy changes, will be very gradual. RBS has written an interesting piece ahead of the event, noting Carney speech on Friday creates upside risk for GBP.

Main headlines in Asia

True risk-off Thur as panic selling hits EMs

AUD/USD: Evidence of healthy downtrend reinforced

EUR difficult to judge and may be flow driven to extremes - RBS

China said to issue alert on credit risks in coal industry

Flash: Carney speech on Friday creates upside risk for GBP - RBS

AUD tumbles as RBA's Ridout talks down the currency

Perfect bearish storm hits the Aussie

Fitch: Germany retains AAA rating: Outlook stable

WSJ interview with RBA's Ridout