- US official says that US and China talk about exchange rate and international monetary system.
- NewZealand June Trade Balance NZ$-417 mln.
- China’s Central Bank says inflation to bottom in Q3.
- RBA’s governor, Glenn Stevens speech – puts emphasis on upside risks to Australian economy. Market sees it as a shift from dovish to neutral.
- AUDUSD jumps up to 8250 on the back of Glenn Stevens comments.
- Nikkei slips, down 0.3% at the moment.
- Gold holds above $950.00, up from NY close at 953.50.
- Talk of China on the bid in EURUSD under 1.4180.
USDJPY and EURJPY drited off into early Asia, with traders readying themselves for the Tokyo fix. EURJPY down from 135.60 to 135.20 but could not manage to break thru 135.00. No clues from the Nikkei, with traders reporting light volumes and a lack of Institutional flow, thus EURJPY drifted aimlessly back up to 135.45 in th eafternoon. Talk of China on the bid in EURUSD under 1.4180, limited the fall to the 1.4200 area, with traders happy to buy there for an eventual push up above the NY close in the afternoon.
There was some AUDJPY selling interest into the fix, catching a bullish Aussie market a touch long for a look at 8200. But the RBA’s Glenn Stevens’ speech thru a spanner in the works. His speech was seen as a shift from dovish to neutral, as he sighted upside risks to the economy. AUDUSD jumped and within miutes it was trading back above 8250. We are now trading above the previous high of 8263, with many looking to the Fibo target of 8375 now.
Ranges:
EURUSD 1.4216 – 1.4261
GBPUSD 1.6454 – 1.6505
USDJPY 94.90 – 95.27
EURJPY 135.00 – 135.64
AUDUSD 8197 – 8277
Goodluck,
Sam
