- Japan July Domestic CGPI -8.5% yr/yr.
- Australia August westpac consumer confidence index survey, up 3.7%.
- Australia Q2 wage price index total hourly pay rates +0.8%.
- Asian Stockmarkets take lead from US, Shanghai Composite down over 2%, Nikkei down 1.4%.
- China says domestic demand cant offset export drop.
- Shirakawa comments on economy saying it will take time to return to sustainable growth path
- Gold slightly higher at 946.00
- Japanese exporters sell USDJPY, EURJPY and traders seen unwinding long cross/yen positions
Early morning buying of Yen crosses saw EURJPY up towards 136.00 and USDJPY above 96.00. The demand was negligible as Japanese exporters were seen selling on top, capping any further rally. The flow on effect from Wall St saw Asian stockmarkets lower, with more unfavourable news on financial firms, leading Asian financials lower. Shanghai took another hit, off over 2% and the Nikkei down 1.3% as we speak, with risk aversion on the agenda once more.
USDJPY sellers tripped stops below 95.75 to get the ball rolling, sending it as far as 95.50. EURJPY was sold off to test the 135.00 buyers and held but only a dead cat bounce back to 135.20 has been seen so far. Stops have been reported below 135.00. Talk of Middle Eastern names and barrier protection buying ahead of 1.4100, again discouraged traders to try taking EURUSD lower in Asia.
AUDJPY followed the other Yen crosses lower with many traders cutting longs and triggering stops below 79.25 and 78.90 in the process. AUDUSD traded briefly above 83c, but sellers towards 8320 and a weighing AUDJPY, took it back to test the bids in the 8240-50 zone. It has held so far but no bounce has been seen either.
EURUSD 1.4132 – 1.4165
GBPUSD 1.6471 – 1.6406
USDJPY 9546 – 96.09
EURJPY 135.00 – 135.99
AUDUSD 8238 – 8304
Goodluck,
Sam
