- API shows surprise fall in crude stockpiles last week, falling 1.5 Mln barrels.
- NZDUSD dollar up early on the back of Dairy auction.
- Xstrata CEO says commodity prices “too frothy”.
- UK Nationwide consumer confidence index rises 1 point to 60, in July.
- Australian PSI falls 6.1 points in July.
- Clinton leaves N.Korea with pardoned journalists.
- Australia June Trade Balance A$-441 Mln, better than expected.
- Australia new vehicle sales fall in July.
- BHP says Iron ore prices stable, doesnt comment on price negotiations with China.
- Gold sold off early to 955 but recovers to 965.
- Nikkei flat
A very dull day with limited moves and flows. There was some minor selling interest of Yen crosses into the Tokyo fix but nothing that shook the markets. Exporter sell orders in USDJPY at 95.50 and option barrier selling related to 96.00 strikes dominated proceeding and never let EURJPY nor USDJPY proceed higher. With no leads from flat Asian stockmarkets, sellers weighed on the cross for an eventual push under 137.00 into the afternoon. There is talk of option barrier selling at 138.00 and 136.00 strikes rolling off tonight.
EURUSD traded in a tight 1.4390-1.4420 range as a result of the cross with no flows seens. Support noted at 1.4360/70 and resistance ahead of 1.4450, reported option barrier selling.
AUDUSD saw some early buying on the back of NZDUSD moving higher because of the up surge in negotiated prices at the NZ Dairy auction. But even better than expected Australian trade balance numbers couldnt see AUDUSD challenge the sellers above 8470.
Ranges:
EURUSD 1.4389 – 1.4422
GBPUSD 1.6924 – 1.6956
USDJPY 94.95 – 95.39
EURJPY136.85 – 137.53
AUDUSD 8424 – 8455
Goodluck,
Sam
