- China looks set to compromise on Iron Ore prices. BHP and RIO trade higher.
- Australian May Balance of Trade -A$556 mio, higher than the expected -A$125 mio.
- Japan June monetary base up 6.4% yr/yr.
- China’s Vice Foreign minister days he has not heard of China request for reserve currency debate.
- USD firmer on the back of China comments.
- Asian stockmarkets mixed, HK up 1.5% after yesterday’s holiday.
- gold slightly lower at 937.60
The USD gather strength after the comments by China’s Vice Fin minister that he knew nothing about the request for a reserve currency debate. EUR drifted off after the NY close but dropped like a stone once the story came to light, falling from 1.4130 to 1.4100 instantly. We spent the rest of the afternoon trading 14100-20 as bids under 1.4100 held firm. Under 1.4080 we could see a move back to low 1.40’s
USDJPY and EURJPY were very quiet with no major flows seen out of Japan. Stops above 97.10 are reported as are sellers above 97.25.
AUDUSD looked firm early morning but a worse than expected Trade balance number was released falling 30 pips to 8050 immediately. It stayed offered all afternoon with sellers coming down to meet the market at the 8070 area remaining offered for the rest of the day as USD strengthened.
Stockmarkets were mixed but mostly flat as traders tread cautiously ahead of ECB and US payrolls tomorrow.
Ranges:
EURUSD 1.4000 – 14054
AUDUSD 8045 – 8098
USDJPY 96.35 – 71
EURJPY 136.22 – 76
GBPUSD 1.6449 – 16500
Goodluck,
Sam
