- Taiwan opens door to Chinese investment.
- Australian Prime Minister see unemployment being a big problem.
- Tankan comes in slightly lower than expected at -48(forecast was for -43) but improves from previous reading of -58.
- Australian Manufacturing Index up to 38.4.
- Australian skilled vacancies fall 3.7% in June.
- Australian retail sales jump 1% in May, but building approvals tank 12.5%.
- Asian Stockmarkets mixed, ASX200 smashed, Taiwan higher.
- China’s June PMI rises to 53.2.
- Fed’s Yellen: sees interest rates at near zero for a couple of years yet.
- Model funds seen buying EURJPY.
- US name buys big amounts of USDJPY.
Focus was on USDJPY today with US name buying large amounts sending it close to 97.00 after the Tokyo fix. The Tankan had little impact with manufacturers rebounding to -48 from -58 in March quarter. There was some light Yen cross selling by exporters into the fix but model funds were seen as keen buyers, especially in EURJPY, buying it up to test 136.00. EURUSD flows were governed by EURJPY but even then it traded in a tight and uninspiring 50 pip range.
AUDUSD saw some volitility, jumping on the retail sales number which came in at +1%, double the expectation of +0.5%, but then sold off in the same minute as building approval numbers were released, showing a fall of 12.5% in May. Good buyers were seen at 8030-40 area but a move under 80c will trigger stops for a move back to mid 79c.
Ranges:
EURUSD 1.4000 – 1.4053
EURJPY 135.02 – 135.96
USDJPY 95.14 – 95.99
AUDUSD 8034 – 8078
GBPUSD 1.6411 -1.6488
Goodluck,
Sam
