- NZ April retail sales +0.5%.
- Bernanke & Paulson to testify before the House on Bank of America’s acquisition of Merrill Lynch
- Blackrock agrees to acquire BGI.
- China May Industrial output +8.9%, retail sales on year +15.2%.
- Nikkei powers up thru 10,100
- Position squaring sees AUD hit hard.
EURJPY grinded higher early morning as USD drifted off into the Tokyo open. Offers over 138.00 kept EURJPY in a tight range, something that we have been seeing a lot off over the last few days. EUR made a half hearted attempt to trade up above 1.4120 but ran into profit takers as was seen in the GBP at 1.6600. EURGBP held firm above 8500 but look vulnerable if 8490 gives way. Good China data was unable to move market as it had been leaked and factored in a few day ago.
AUDUSD: Morning moves higher were unstainable as local traders sold the currency leading the other majors lower into the afternoon. Once below 8150, weak trailling stops were triggered sending the AUD into the buyers region under 8130. EUR and GBP both lower as well as market reversed early USD weakness. USDJPY had a quiet day with small gains off the lows on the back of USD buying in the afternoon. Good buyers are sighted at 97.00.
Ranges:
AUDUSD 8122 -8220
EURUSD 1.4065 – 14128
GBPUSD 1.6516 – 1.6598
USDJPY 97.44 – 97.90
EURJPY 137.61 – 138.05
Goodluck and have a good weekend,
Sam
