- China’s FX reserve chief says reserves being managed appropriately
- JPY managed gains across the board amid corporate repatriation as financial year-end approaches
- GBP again falls heaviest as latest polls suggest a hung parliament
- Australian job ads show very strong growth again
- Asian central banks buy USD/Asia, transfers USD into EUR, GBP and AUD
- Regional stockmarkets little changed
Another quiet session in Asia which has only been notable for repatriation flows by Japanese corporates out of Europe and the US. EUR/JPY opened at 123.15 and fell almost 90 pips before steadying. USD/JPY opened at 90.25 and fell to 89.90. Ranges: USD/JPY 89.89/90.33. EUR/JPY 122.34/123.14.
EUR/USD drifted lower on EUR/JPY selling but the market is well aware that Asian Sovereign names are buying between 1.3570/85 and it didn’t try for much lower. Very tight 1.3609/35 range.
Cable fell hardest of the majors amid some heavyish GBP/JPY selling. EUR/GBP also managed some decent gains. Talk of Sovereign bids at 1.4950 in cable. Ranges: Cable 1.4995/1.5067, EUR/GBP .9047/75, GBP/JPY 134.80/136.10.
The AUD did not react to the strong job ads data and has lacked momentum for much of the day. Liquidation of long AUD/NZD positions and AUD/JPY selling weighed on the pair. Ranges: .9075/.9103.
Markets: Nikkei -0.2%, HK +0.2%, Kospi -0.1%. Gold -0.2% at $1022/oz.