- Shanghai stockmarket opened 0.7% lower but has since rallied into positive territory
- Andy Xie sees Shanghai market falling another 25%
- JPY crosses have benefitted from this, EUR/JPY up about 60 pips on the session
- China’s August PMI 54.0 Vs 53.3 in July
- Australian building approvals +7.7% MoM
- Australian Q2 balance of payments -AUD$13.3 bln, worse than expected
- Russian manufacturing PMI at 11-month high
- Regional stock markets gain on average 0.5%
It has been a fairly quiet day in the Asian forex market but the JPY crosses have benefitted from a recovery in regional equity markets. EUR/JPY has gradually moved higher from 133.10 to 133.70 but momentum has been missing. Dealers say that there has been little interest in any of the major pairs and the AUD market has been sidelined awaiting the RBA decision.
On the order front, heavy stops are tipped in the AUD/USD above a suspected option barrier at .8500. EUR/GBP sees solid offers at .8820 and solid bids at .8770.
Markets: Nikkei =0.5%; Kospi +0.9%; Shanghai +0.5%; HK +0.6%; Oil, brent crude steady just below $70/bbl. Gold steady at $953.50/oz.
Ranges: EUR/USD 1.4321/57; USD/JPY 92.85/93.19; cable 1.6255/1.6302; AUD/USD .8418/48; EUR/JPY 133.10/72.
