- Belgian central bank issues negative forecasts.
- ECB’s Guy Quaden says world still in recession.
- NZ’s Terms of trade index -3% in Q1.
- Chrysler sale to Fiat gets Supreme court go-ahead.
- The Chinese upset over the failed RIO deal.
- Japanese Goods Price Index falls by 5.4% in May.
- Australian June Consumer Confidence +12.7%, biggest rise in 22 years.
- Rumors that China’s Industrial Output number this Friday will be higher then expected.
- China May Consumer prices -1.4% and Producer Prices -7.2%.
- Japan MOF: G8 may discuss exit strategies at meeting.
- Global miner BHP takes a 58% price cut on coal.
Early morning pressure on USDJPY saw it trade just above 97 as the market pushed for stops under 97.00 into the Tokyo fix. From there USDJPY recovered and never looked back. A short market was taken higher and weak stops above 97.60 were triggered after the selling interest between 97.50-60 was filled.
AUD led the pack higher with good support seen via commodities buying and a very strong consumer confidence number. The AUDUSD traded one way as AUDJPY buying early on led to some heavy volumes being bought after the release of the strong data.
Seller above 1.4090 has kept EURUSD in a tight range but rumored stops above 1.4100 may see it trade higher into Europe especially if EURJPY can trade above 137.50. EURJPYwas bought up thru 137.00 as USDJPY found support in the low 97’s. Offers between 137.30-50 has kept a cap on it so far.
GBPUSD has been subdued today, trading in a consolidation range after the explosive move up last night. EURGBP buying between 8610-20 has also contributed to GBP remaining offered in Asia today.
Ranges:
AUDUSD 7998 -8071
EURUSD 1.4049 1.4093
GBPUSD 1.6292 – 1.6342
USDJPY 97.06 – 97.69
EURJPY 136.65 137.50
Goodluck,
Sam
