- G7 meeting failed to say anything new regarding the recent weakness of the USD and the Asian market has seen this as a reason to sell the greenback.
- Speculation of a 25 bps rate rise tomorrow has seen the AUD/USD rally 100 pips.
- Nouriel Roubini back in the headlines saying that stocks and commodities have risen too far and too fast
- Chinese markets are still closed and Australian markets were also closed for a public holiday
- NZ finance minister again tries to jawbone the NZD lower
- Australia September PSI up 1.3 points
- Greek Socialist party wins general election
The Irish referendum, the Greek general election result and the failure of the G7 to address the recent USD weakness all combined to see the EUR/USD break higher in early Asian trade. After closing in NY around 1.4580, the pair spiked up to 1.4625, retraced quickly to 1.4580 but then regained strength as EUR/JPY buying entered the market. Sell orders are noted at 1.4660 from Japanese names.
USD/JPY fell early (with the initial push in EUR/USD above 1.4600) to a low of 89.20 but it has rallied on the back of EUR/JPY and AUD/JPY buying- driven by political and interest rate issues. The Nikkei was lower in early trade but the JPY crosses still made some gains which was an interesting development. Sell orders are noted in USD/JPY at 90.00 and in EUR/JPY at 132.00, with stops also noted in the latter, tight above the sell orders, at 132.10.
The AUD/USD rose a cent today on interest rate speculation. Markets were thin and illiquid with both Australia and China closed.
The pound sterling had a quiet session, basically tracking the EUR.
The Nikkei had a flat day after falling on the open and both oil and gold futures are unchanged from the NY close, with gold stabilising above $1,000/oz.
Ranges: EUR/USD 1.4580/1.4647; cable 1.5917/1.6005; USD/JPY 89.21/96; AUD/USD .8646/.8746.