- Regional stockmarkets follow Wall Street lower
- Japan returns after 3-day holiday, Nikkei gains ground
- Overnight, FOMC sees economy strengthening
- RBA financial stability review; financial risks have eased considerably
- Bank of England calls crisis meeting acording to UK Telegraph
The Asian market has paid most heed to the fall on Wall Street and has seen this as perhaps a return of risk aversion. USD/JPY opened in Asia at 91.40 and rallied early to a high of 91.62. The pair has since fallen gradually as have most of the JPY crosses, despite the fact that the Nikkei hasn’t fallen in line with Wall Street, HK and China. Semi-official bids are still expected at 90.10-20 with major stops below 90.00.
EUR/USD closed in NY at 1.4730 and quickly fell to trigger stops below 1.4700, reaching a low of 1.4688. The bounce back was just as quick, with the pair trading to a session high at 1.4753 before EUR/JPY selling began to weigh. Offers are building up at 1.4780 and bids are significant, starting at 1.4670. There is still market talk of really large bids at 1.4600-25 from Sovereign names.
AUD/USD fell early and triggered stops below .8650 before bouncing hard to its session high at .8718. There is talk of Sovereign bids there also around .8635.
Sterling has been fairly uneventful, following the EUR. I have heard of some significant selling interest at 1.6500 in the cable and also buying interest in the EUR/GBP around .8925/40- nothing close to the market.
Markets: Oil lost $4 overnight and Asia has consolidated around $67/bbl. Gold also lost $4 to $1011/oz. Shanghai -1.3%, HK -2.5%, Nikkei +0.7%.
Ranges: EUR/USD 1.4688/1.4753, Cable 1.6320/71, AUD/USD .8647/.8718, USD/JPY 90.89/91.62 and EUR/JPY 133.80/134.65.
