- Intel falls by almost 5% in after NY-hours trade
- Australia MI leading index -0.3%
- Talk of Sovereign names diversifying out of EUR and into GBP and AUD in particular
- Regional stock markets down by around 2% on average
Risk trades were out of favour in Asia today and the Intel results after the bell did not help. Regional stock markets fell, helping to trigger stops in the JPY crosses. The failure of AUD/JPY overnight at an important technical level added to the bearish bias. Lack of orders close to the market also did not help.
EUR/JPY stops below the short term bullish trend line at 130.65 propelled the pair to an intraday low at 129.95. The range so far has been 129.95/131.45. The overnight failure of AUD/JPY to break above the 200-day MA at 73.10 has seen this pair attract some profit taking. Today’s range was 70.22/71.67.
EUR/USD has been buffeted by cross plays in a 1.3221/74 range. USD/JPY has fallen along with the JPY crosses. Range 98.15/99.17. Cable has also slipped in a 1.4860/1.4920 range and the failure to break above 1.4960 may see pressure increased on long GBP positions in the short term. AUD/USD range .7149/.7237 and USD/CHF 1.1370/1.1412.
The Hang Seng and Singapore stock market are down 2%, Shanghai and Seoul are down over 1.5%. Gold is at $923/oz and oil is at $49.25/bbl.
