Another very quiet session in the Asian FX market saw the USD give up some of it’s post-NFP gains. This was down to profit taking and not because of any major market developments.
- Australian job ads +5.2% MoM
- Japanese foreign reserves at record high
- Market discounts idea of new Dubai credit crisis
- Gold continues it’s slide, down over 1% and briefly slipping under $1150/oz
- Regional bourses mixed; Nikkei, Kospi gain; HK and Sydney slip
- Treasury linking Citigroup stake sale to TARP repayment
Very early interbank trade saw cable fall to its lows at 1.6425 as the market worried about another possible credit issue in Dubai. This move quickly reversed once traders realised that the numbers being talked about were much smaller than last week and that we were only dealing in runours. Cable range 1.6425/1.6505.
USD/JPY opened around 90.35 but persistent selling by Japanese corporates, happy to be selling 200 pips higher than on Friday, was enough to cap the USD today. JPY crosses also suffered from mild profit taking with AUD/JPY probably the biggest loser. USD/JPY range: 89.77/90.38
EUR/USD fell slighty in early trade from its NY closing level around 1.4865 but talk of solid bids towards 1.4800 dissuaded traders from taking it lower. Range 1.4851/98
The AUD has underperformed today with AUDJPY selling the main culprit. AUD/USD range .9116/71 having closed in NY around .9145.
Markets: Nikkei +0.7%, HK -0.7%, Kospi +0.4%, Sydney -0.7%. Gold -0.9% at $1159/oz.
