- Australia Q2 Export prices fall 20.6%.
- RBA makes $200 million trading AUDUSD over the last two months.
- Explosions hit Jakarta’s Ritz and Marriot Hotels. The latest, 9 dead and 42 injured.
- Yen crosses slip after fixing
- Real money funds seen selling USDJPY
- Asian stockmarket flat
- Gold unchanged at 936.50
Once again we saw buying of Yen crosses into the Tokyo fix and a slide there after. Real money funds were seen capping the USDJPY near 94.00 and exporters joined in pushing it back down into the 40’s. The news of the Jakarta hotel bombing also acted as a sell catalyst as traders trimmed longs ahead of the Japanese long weekend. EURJPY saw some small stops hit on the way down thru 132.00, a US Funda noted seller, but found good support at 131.80. GBPJPY was the worse performer sliding over 100 pips from its morning fix highs and GBP back under 1.6400. Talk of an Asian Central bank defending a 1.4200 EURUSD barrier had traders trimming longs only to find bids just under 1.4100.
US names were seen selling AUDUSD early morning but found support temporarily around 8030 from local corporates. There was talk of Toshin related demand on the fix but that didnt arise and traders found themselves a touch long going into the “terms of trade” numbers. The number was well outside the forecast band, showing export prices had fallen 20.4% in Q2. The AUDUSD reacted immediately and sub 80c stops were hit.
Ranges:
EURUSD 1.4092 – 1.4144
GBPUSD 1.6360 – 1.6444
USDJPY 93.46 – 93.90
EURJPY 131.85 – 132.75
AUDUSD 7980 – 8055
Goodluck,
Sam
