With the exception of the AUD, which is a mere 30 pips lower, all of the other major pairs are trading almost exactly where they were for the entire session yesterday
- There was some very heavy turnover in USD/JPY, with reportedly 1 billion worth of stops every 5 pips below 101.15 starting to get triggered but running into massive buying from Japanese semi-staters and Sovereign types. Now we are back to where we started.
- The AUD is mainly being affected by the lower iron ore price (fell below $100 overnight) and the failure of AUD/NZD to challenge 1.0900 is also driving some AUD selling. Today’s RBA minutes should not hold any surprises as we had the Statement of Monetary Policy last week.
- EUR and GBP are unchanged and the short-term picture remains a bit cloudy. I’m keeping my powder dry and hoping for the fog to lift. There is some important economic data tonight in the UK and we might see more positional adjustment ahead of that.
Good luck today.
