- Chinese Official backs USD as world’s reserve currency.
- Dutch May Manufacturing PMI rises to 41.2.
- Australian Q1 current account deficit A4.6 bio
- Australian April Building approvals +5.1%.
- Commodity shares lead the way in Asian Stockmarkets.
- Geithner says China has confidence in US economy.
- RBA leaves rates on hold.
Early morning GBPJPY profit taking saw the rest of the Yen crosses follow lower. There were rumours that a Saudi investor had decided to sell his stake in Barclays. With bids holding EURGBP above 8600, GBP remained suppressed for the remainder of the Asian session, with offers seen in the 1.6450-60 zone. EURJPY was sold down thru 136.00 but that was short lived as USDJPY buyers at 96.00 held tight , helping Yen crosses higher into the afternoon.
Euro saw initial bids at 1.4150 filled and weak stops under 1.4140 taken out before spending the rest of its uninspiring day trading back up to 1.4170.
Focus was on AUDUSD with economic data suggesting that the worst maybe over in Australia. Building approvals for April were surprisingly higher as were the balance of payments number for Q1. Market bought the early morning dip to see it run back above 8100. The RBA decision to leave rates on hold was factored in thus AUD remains trading around 81c.
Ranges:
EURUSD 1.4132 – 1.4182
GBPUSD 1.6407 – 1.6465
USDJPY 96.07 – 96.64
EURJPY 135.89 – 136.82
AUDUSD 8059 – 8116
Goodluck,
Sam
