- Obama re-appoints Ben Bernanke as Chairman of the Federal Reserve.
- Yosano says hard to curb governmant bond sales.
- Model funds seen selling AUDJPY early morning.
- Shanghai Composite tumbles, down 3.3% at the moment.
- Nikkei down 0.5%.
- Gold higher at 946.00
What started out as a quiet day, turned out to be a sell day as risk was once again “off” on the back of the Shanghai Composite taking a hammering. No demand for Yen crosses was seen heading into the Tokyo fix, instead a steady sell off was seen, with model funds selling AUDJPY and early Tokyo names leaning on EURJPY. The selling interest continued into the Asian midday as EURJPY stops were triggered below 134.60 to see it down towards 134.20. EURUSD held well, with talk of good bids at 1.4270, bucking the downward EURJPY trend to pop above 1.4300 late afternoon. USDJPY was sold off, down thru 94.00 and triggered stops in the process as the Shanghai Composite took centre stage, spooking the market.
AUDUSD was sent lower on the back of model funds selling AUDJPY taking out the buyers at 8350 but holding just below to see a small afternoon bounce with the EURUSD. A tight 30 pip range was seen.
Ranges:
EURUSD 1.4271 – 1.4307
GBPUSD 1.6381 – 1.6421
USDJPY 93.90 – 94.58
EURJPY 134.20 – 135.22
AUDUSD 8343 – 8379
Goodluck,
Sam
