- RBA sold AUD$850 million in September
- RBA Governor Stevens says that they cannot be too timid about raising rates
- Regional bourses gained up to 2%
- Gold consolidated gains above $1060
- Chinese urban house prices +2.8% YoY
- SAFE does not expect undue upward pressure on Yuan
- NZ Q3 CPI higher than expected at +1.3%
The JPY has now taken on the mantle of the currency which is designated to fall alongside the USD. JPY crosses made more decent gains during Asia with AUD/JPY leading the way as regional bourses gained almost 2%.
AUD/USD has shown no signs whatsoever of wanting to pull back and has added another 75 pips today, taking out an option barrier at .92 in the process. Dealers say that the pair is drifting higher trying to find pockets of selling interest but they are few and far between.
EUR and GBP have been relatively quiet, also drifting higher on the back of rallies in the commodity currencies and on JPY cross buying. EUR/USD took out a small option barrier at 1.4950 but the really big barriers are tipped at 1.5000 and 1.5010 I believe.
The JPY has weakened against all the majors except the USD, where it has stood basically still. EUR/JPY sell orders are noted towards 134.50.
Markets: Nikkei +2.1%; HK +1.1%; Kospi +0.4%; Shanghai +0.25% in early trade. Oil $75/bbl. Gold $1065/oz.
Ranges: EUR/USD 1.4926/60; Cable 1.5994/1.6062; USD/JPY 89.28/66; AUD/USD .9146/.9222; EUR/JPY 133.30/91.
