- Military Coup in Honduras to oust leftist leade has Venezuelan Chavez threatening military action.
- IMF sees French economy recovering in eraly 2010.
- NewZealand posts trade surplus in May, NZ$+858 mio, building approvals advance 3.5%.
- Japan May retail sales -2.8%, Industrial output +5.9%.
- Gold trades to a low of 933.40 before recovering slightly.
- Nikkei flat, ASX200 flat, in low volume trading
- China’s Q2 growth to be better than Q1 – Zhou Xiaochuan.
- Anglo American in talks with Chinalco.
- Sovereign names selling EUR
- Zhou Xiaochuans speak in Basel – Says wont suddenly change stable reserve policy.
- China will not continue buying metals for reserves in current market conditions.
It was a slow start to a Monday morning with traders looking to push the majors up thru Friday’s highs. The EUR met strong resistance above 1.4070 as sovereign names were seen to be selling pushing it back to 1.4040 as EURJPY was sold off in tandem into the Tokyo fix. From there it broke under 1.4040 triggering weak stops to trade back towards 1.4000. Technical traders bought ahead of some bids at 1.4000 pushing it back up 30 pips late afternoon.
USDJPY tried to test 95.00 early morning, however strong bids reported just under held tight helping USDJPY trade up for the rest of the day. It was not affected by the early EURJPY selling as it was more a USD move higher across the board.
AUDUSD struggled near Friday’s highs, 8085 once again proving to be the level to watch on the top. A softer than expected industrial production number and the continuing story that China will stop buying metals for its reserves weighed on the currency sending it back to test support just above 80c.
Ranges:
EURUSD 1.4000 – 1.4076
EURJPY 133.60 – 134.14
GBPUSD 1.6449 – 1.6522
USDJPY 95.10 – 95.59
AUDUSD 8008 – 8085
Goodluck,
Sam
