- Alistair Darling admits unemployment will continue to rise.
- Japan’s March all- industry activity fall 2.4%.
- G8 urges oil price stability.
- ASIC lifts short selling ban of financial stocks.
- China announces plan to resume IPO’s.
- N.Korea carries out nuclear test.
- BOJ’s Sirakawa says world economies levelling out.
- Thai GDP fall 1.9% in Q1.
- FT story: China stuck in dollar trap.
Another Monday morning where market artificially pushes higher before gains are reversed. EURJPY was the main culprit as locals pushed it above 133 to trigger rumored option barrier. However AUDUSD and EURUSD couldnt trade above Friday night’s highs as the US dollar reversed its overnight weakness with good selling seen at 1.4040-50 area and 7850 respectively.
GBPJPY selling was the first of the Yen crosses to come under pressure as it traded shy of its resistance level. Then the announcement that North Korea story that they conducted a nuclear test sent Yen crosses lower and sparked a sell off in Asian equity markets withe the Kospi trading down 4% in a matter of minutes. EURJPY reversed and traded down to test bids at 132.00 where they were found to be solid. AUDUSD saw profit thru HK names selling AUDJPY to trade back to Friday night’s low.
Once the N.Korean story was absorbed and market noticed there was no follow thru, EURJPY bounced nicely catching break traders short for a move back up to 133.00 and back above 7810 in AUDUSD and 1.4000 in EURUSD. USDJPY traded between 94.40 and 94.80 until later in the afternoon when it broke above 95.00 on US dollar buying by a US bank out of Japan.
Ranges
EURUSD 1.3974 – 1.4046
AUDUSD 7770 -7835
GBPUSD 1.5851 – 15942
USDJPY 94.4 – 95.20
EURJPY 132.03 – 133.41
Goodluck,
Sam
