- RBA minutes: Higher rates likely at some stage
- EU FinMins and IMF discussed difficult situation in Greece
- Draghi set to be next ECB head
- China: Foreign Direct Investment +26% compared with year ago
- BOJ Shirakawa: Japanese economy in severe state
- 5 regional financial centres closed for public holiday
- Stockmarkets fall by 0.2% on average
- Oil slightly lower at $97/bbl, Gold slightly higher at $1495/oz
Very little to report in another quiet Asian session. Some early risk aversion saw the JPY crosses fall but comments from Shirakawa saw this unwound.
EUR/USD closed in NY at 1.4165 and will close in Asia near the same level. EUR/JPY selling saw EUR/USD pushed to session lows near 1.4130 but momentum was lacking and all intraday moves have basically been unwound. Ranges: EUR/USD 1.4127/76, EUR/JPY 114.26/96
USD/JPY for a change was the most volatile of the majors. It fell to 80.70 on early risk aversion plays in the crosses but then rallied and triggered light stops above 81.10 on the ‘severe state of economy’ comment by Shirakawa. Range: 80.71/81.23
AUD/USD saw a brief period of volatility after the release of the RBA minutes; rallying initially on the headlines but falling back some as dealers had an opportunity to read all the language. For all of this, AUD/USD finishes the session unchanged. Ranges: 1.0529/95
Cable was supported by market talk of bids 1.6160/70, trading 1.6173/1.6215. EUR/GBP .8726/50.
The sharp move lower yesterday in EUR/CHF has renewed talk of heavy stops on downside, firstly below 1.2470 and getting much heavier below 1.2400
