- Chinese Premier sees difficult Q1
- China’s home prices slide again in December
- USD/CNY fixed at record low below 6.3000 for first time
- India services PMI rises to 54.2 from 53.2 in November
- Nikkei gains 1.4%, All Ords +1.7%, other regional indices flat on the day
- Gold eases slightly to $1598/oz, Oil $102.50/bbl
Very quiet session in Asia today, consolidating the risk-on gains from yesterday. Tokyo returned to the market, catching up with the rest on the equity markets, but there was little or no interest in the FX market.
Talk of heavy selling interest in the AUD/USD above 1.0400 and near 1.0420 in particular, encouraged profit taking in some of the AUD crosses after big gains over the last 48 hours. AUD/USD closed in NY near 1.0350, rallied above 1.0380 in early trade but couldn’t maintain the gains and fell back quickly. Ranges: 1.0318/82
EUR/USD has had a range of less than 40 pips, with no-one willing to get involved ahead of tonights Bund auction and the upcoming Merkel/Sarkozy meeting. EUR/JPY has been supported by real money buyers but EUR sentiment overall remains fragile. Ranges: 1.3020/58
USD/JPY moved around with cross flows in a 76.58/77 range. Solid bids are reported near 76.50 but bounces are anaemic.
Cable 1.5625/55; USD/CHF .9312/40
