- Australian housing starts fall 4.7% in Q2 vs +2.1% exp
- Australia revises down Q2 trimmed mean inflation to 0.7% from 0.9%
- Australian Westpac-MI consumer sentiment up 8.1% in Sept
- Chinese Premier Wen says will continue to invest in Europe, expects problems to be solved
- Chinese central bank advisor Li says China should not buy large amounts of European bonds
- US Democrats lose special election for Weiner’s congressional seat, according to an early report
- Japan July industrial production revised down to +0.4% from +0.6%
- Japan stocks down 1.1%, Australia -1.2% and South Korea down 2.7%.
- S&P 500 futures are down 14 points
- Oil and copper approx. 1% lower
- Gold down $3 to $1831
- USD and JPY the leaders, AUD and NZD the laggards
Trading started quietly and positively as AUD/USD climbed to 1.0371 after the consumer sentiment headlines. The news on housing and inflation news completely reversed the trade and broad risk aversion hit at the same time. AUD/USD plunged 1.5 cents to a one-month low of 1.0217.
USD/JPY remains in its deep slumber. The pair traded in a 20 pip range from 76.85 to 77.05. EUR/USD started higher but is 70 pips from the highs now at 1.3635. Mixed comments from China were mostly a catalyst to sell, but the broad risk off tone was the larger driver. Cable hit a fresh low at 1.5742.
