- Financial Times: US AAA rating at risk.
- Japan March current account surplus falls 48.8% yr/yr.
- China April Industrial Output slows to 7.3%.
Morning session was dominated by the FT article on the US credit risk. US Dollar was sold across the board which in turn saw EURUSD trade up to 7 week highs above 1.3700, AUDUSD above 77c and USDJPY dipping towards 95.50 support. EURJPY held just above 131.00 and spent the rest of the day clawing back losses towards 132.00 as the kneejerk US selling reversed losses. The afternoon was very slow and all one way with the US Dollar regaining ground against all the majors.
AUDUSD offers above 77c proved resilient once again but bids around 7650 kept it in a tight range. Euro spent the afternoon in a 30 pip band.
Ranges:
EURUSD 1.3639 – 13721
AUDUSD 7642 – 7703
USDJPY 95.76 – 96.57
EURJPY 131.08 – 131.97
GBPUSD 1.5261 – 1.5322
Goodluck,
Sam
