- Australian Q2 GDP +1.2%, fastest growth in 3 years
- Australian stockmarket rises 2%
- China’s official August PMI 51.7
- HSBC China PMI 51.9, up from 49.4
- Australia July manufacturing index 51.7
- Spain’s Zapatero: Debt auctions show that Spain can meet financing costs
- Japan PM Kan and his challenger Ozawa put forward their policy platforms; the latter supports direct FX intervention
- Regional stockmarkets rise by 0.5% or more
Risk trades have benefitted today from the strong Australian GDP numbers and also the improving Chinese PMI. AUD/JPY has risen by 1.5% and EUR/CHF has also risen by 50 pips.
USD/JPY opened the session on its lows at 84.05 but no-one was willing to stay short in fear of some direct intervention. None eventuated but the aforementioned economic data fuelled some buying of the JPY crosses. Ranges: USD/JPY 84.03/59; EUR/JPY 106.60/107.42; AUD/JPY 74.89/76.08.
The AUD has risen strongly across the board after the excellent GDP numbers and the promising Chinese PMI. Range: AUD/USD .8913/.9003.
EUR/USD has also benefitted primarily from demand in the crosses. Ranges: EUR/USD 1.2664/1.2708, EUR/CHF 1.2868/1.2925
Cable traded pretty much in line with the EUR, with the EUR/GBP cros confined to a 20 pip range. Cable 1.5337/91, EUR/GBP .8252/72.
Markets: Nikkei +0.6%, HK +0.4%, Kospi +1.3%, All Ords +1.8%. Gold $1248/oz. Oil $72.25/bbl.
