- China tightens mortgage rules again and introduces more stringent stress tests for banks
- Japanese PM and Trade Minister both try their hand at some verbal intervention
- Latest data shows Japanese retail accounts to be long USD/JPY at close to record levels
- New Zealand unemployment rate jumps to 6.8%
- Nikkei +1% but was almost 2% higher earlier in the session
Early activity was driven by the NZD after much poorer than expected employment data. This saw the NZD/USD fall from .7350 to .7280 and this in turn dragged the AUD/USD slightly lower also. The AUD/USD recovered on AUD/NZD short-covering but has otherwise had an uneventful session. Ranges: AUD/USD .9143/73
USD/JPY opened just below 86.50 after a strong rally during the NY session but it has fallen steadily here in Asia. The market is aware of decent sized offers above 86.60 and was happy to sell ahead of these. Verbal intervention had no effect whatsoever even if the trade minister did say that some concrete steps would have to be taken. Ranges: USD/JPY 86.04/49, EUR/JPY 113.14/84
EUR/USD closed in NY at 1.3160 and has traded 15 pips either side with nobody showing much interest ahead of the ECB a little later. Ranges: EUR/USD 1.3146/77.
Sterling has been similarly quiet ahead of the MPC. Ranges: 1.5875/1.5914, EUR/GBP .8273/89
Markets: Nikkei +1%, HK flat, Kospi -0.7%, Shanghai -0.6%. Gold $1198/oz, Oil $82/bbl.
