- Australian Treasurer Swan, says Australian Interest rates will rise along with other global rates.
- NZ Labour cost index +0.3% in Q2.
- Japan July monetary base +6.1%.
- China crude and coal imports rise in July.
- Australia June Retail Sales -1.4% s/adj.
- Australia Q2 House price index +4.2%.
- Solid gains seen in commodity and oil stocks.
- Yosano says not concerned about recent moves in long term rates.
- Hayashi says too early to tell if Japan has fallen into deflation.
After an early sell off of Yen crosses by exporters and longs booking profits, it was off to the races with AUDJPY and EURJPY leading the way. EURJPY dipped to 136.90 before good demand saw it all the way higher to 137.70 area. Stops above 137.75/80 were not triggered with good selling interest reported towards 138.00( There is talk of an option barrier at 138.00). The afternoon saw a drift off back under 137.20 as Asian Stockmarket gains were reduced on the back of profit taking. Exporter offers in USDJPY at 95.50 and more mentioned at 96.00 stopped any further advance thru the overnight high.
EURUSD was only tracking EURJPY with no flows to talk about. Bids were found sub 1.4400 early morning for a push up into 1.4430 but we find ourselves back under 1.4400 ahaed of the European open.
AUDUSD had a strong day with good demand seen thru AUDJPY. The retail sales number came in lower than expected but the chain volume retail sales for Q2 made up for it as did the stronger than expected Q2 House price index, +4.2%. It ran quickly from 8435 to above 8460, triggering stops above 8450 in the process. It has held around the 8450 area since, as we await the RBA decision on rates in a few minutes.
Ranges:
EURUSD 1.4383 – 1.4433
GBPUSD 1.6920 – 1.7004
USDJPY 95.05 – 95.46
EURJPY 136.89 – 137.69
AUDUSD 8409 – 8470
Goodluck,
Sam
