- NZ Q2 +0.6% qtr/qtr, +1.9% yr/yr.
- Japan Tertiary Index falls 0.1% in May.
- July RBA bulletin released.
- RBA reports having sold A$1.94 bio in June.
- Australia June Merchandise Imports fall A$14 mio.
- China Q2 GDP +7.9% yr/yr.
- Australia & NZ sign memorandum to make pension savings portable.
- CIT likely to file for bankruptcy on Friday.
Asian stockmarkets put in solid gains following Wall Street’s lead but currency risk was a little subdued today. Hedge funds were sellers of Yen crosses after such a good run up, limiting any extension on the day. Yen crosses had been holding up in anticipation of good GDP numbers out of China but once released we saw a sell off because of earlier leaks of the numbers out of China… buy the rumor sell the fact scenario. Having said that EURJPY didnt retrace that much, down to 132.20 from 132.80 before the numbers. Once again EURUSD held tight in a narrow with no flows to talk about. Some temporary support is seen at 1.4060 area. The CIT news that it may have to file for bankruptcy also weighed on the Yen crosses as traders took profit and await the reaction in the US tonight.
AUDUSD saw a move lower back under 80c with the RBA reporting having sold A$1.94 bio in June. It seems the market saw this as evidence that the RBA is happy to keep selling AUD in the 80-81c range. 7950 – 8050 the range seen for now. The market had also been caught long on the back of the expected China numbers.
Ranges:
EURUSD 1.4060 -1.4107
GBPUSD 1.6380 -1.6437
USDJPY 93.92 – 94.44
EURJPY 132.14 – 133.05
AUDUSD 7973 – 8034
Goodluck,
Sam
