AUTOREFRESH 
Asian FX market wrap: mild risk aversion after early stop-loss hunt
- EUR/JPY opened higher this morning on renewed Greece and BoJ speculation
- AUD/USD also gapped higher in thin early trade to trigger a .9200 barrier
- Mild risk aversion set in thereafter as regional bourses slipped around 1% lower
- Chinese Premier says CNY is not undervalued
- Signs appearing that China is becoming increasingly outspoken in its dealings with Washington
- More disappointing house-price data out of the UK
- Speculative market positioning report suggests market: long AUD, CAD, JPY; short EUR, GBP, NZD; flat USD, CHF
EUR/JPY gapped higher in the early interbank market, trading to 125.30 after closing in NY at 124.50. These gains have been given back amid the aforementioned mild risk aversion and the on-going repatriation by Japanese corporates. USD/JPY still sees a lot of corporate selling interest at 91.10/20 and EUR/JPY is also attracting offers from 125.50 to 126.50 from European-based Japanese corporates. Ranges: USD/JPY 90.56/80. EUR/JPY 124.44/125.30.
AUD/USD took out a barrier option at .9200, trading to a high of .9204 on interbank platforms, before settling back on the reports of increasing tension between China and the US regarding the level of the RMB. Fairly heavy stops ae reported below .9100 and particularly below .9060. Range: .9130/.9204.
EUR/USD moved higher early on the EUR/JPY and AUD/USD moves but the prospect of Sovereign offers above 1.3800 (particularly between 1.3825/50) dissuaded any bullish heroics and this pair also drifted lower throughout the session. Range: 1.3727/76.
Sterling was unaffected by the housing data and in fact managed to make some gains against the EUR and the AUD. Cable range: 1.5154/97.
Markets: Nikkei -0.1%, HK -1%, Kospi -1%. Gold steady at $1105/oz.
A commentator from a Japanese bank said on Japanese TV this morning that he thinks Wen’s talk about a possible double dip in China is just an attempt to make an excuse for not allowing the Yuan to appreciate.
Did China actually have even a single dip recession!?