- Australia September consumer confidence +5.2%.
- Australia July retail sales -1%.
- AUDUSD falls after retail sales numbers.
- Australia housing finance falls 2% in July.
- BOJ’s Suda says unconventional steps for easing strains lessening.
- China says time ripe for investments overseas.
- Asian equity market turn negative, Shanghai -0.3%, Kospi -0.8%, ASX200 -0.3% and Nikkei down over 1%.
- Gold trading at 1000.15
Another case of buying “risk” in the morning and then trimming those positions into the afternoon. Yen crosses were in demand early morning, with Japanese players buying Yen crosses even after the fix. EURJPY was pushed up from the open and into the Tokyo fix. It traded above 134.00 and towards 134.20 before running into offers. However it remained above 134.00 as the Shanghai composite opened up and traders were enticed into buying. EURUSD, like many other Asian trading days, was a non event, taking cues from EURJPY movements. The Shanghai index turned negative in the afternoon, following other Asian bourses lower, thus the sell off in EURJPY back towards its open. Bids are reported ahead of 133.50(100 day MA).
USDJPY remained under pressure all day, trading in a tight 20 pip range. There is talk of good bids ahead of 92.00 but stops below 91.50.
AUDUSD was well supported early morning by a US name seen buying and AUDJPY buyers out of Japan. It popped higher after the consumer cofidence number, but only managed to top out at 8660, the overnight high. The retail sales number that followed was lower than expected causing traders to exit longs back to 8515/20. It held there temporarily until the Shanghai Index took a turn, sending the AUDUSD back down thru the 86c mark. There is talk of real money funds looking to buy between 8550-80.
Ranges:
EURUSD 1.4480 – 1.4518
GBPUSD 1.6488 – 1.6545
USDJPY 92.22 – 92.43
EURJPY 133.62 – 134.17
AUDUSD 8582 – 8660
Goodluck,
Sam
