- China’s FX reserves still on the rise, $2.1 Trillion at the end of June.
- Japan Q2 GDP +0.6%.
- NZ food price index -0.9% in August.
- China says will maintain fiscal and monetary measures to help the country recover.
- China August retail sales +15.4% yr/yr, CPI -1.2%, PPI -7.9%, Industrial production +12.3%.
- China data better than expected, investors continue to buy “risk” and sell USDJPY.
- China central bank extended 410.4 Bln Yuan of new loans in August.
- Citi Bank bullish gold, calls it up to $1300.
- gold trading at $1000
- Asian equity markets mixed, Shanghai composite up 1.2%, Nikkei down 0.3%, Kospi +0.3%, ASX200 +0.6%.
USDJPY and EURJPY drifted off early as the market awaited the Chinese economic data. USDJPY down to 91.50 and EURJPY down to 133.55 prior to the numbers. The data was well received and better than expected, confirming the Chinese economy continues to strengthen. “Risk” was on, EURUSD jumped 40 pips testing the overnight high, just shy of the sellers at 1.4620 but remained bid for the rest of the afternoon. EURJPY bounced 20 pips off 133.30 with a stronger EUR , even though USDJPY continued its slide thru the overnight low of 91.40. However, reports of semi-governmental bids absorbing a lot of the USDJPY selling, contained it from trashing lower. Large bids are noted ahead of 91.00.
AUDUSD drifted off early morning on the back of AUDNZD and AUDJPY selling to test the support at 86c. The well received Chinese data was a catalyst for an immediate move higher towards 8650 and remained bid for the rest of the day.
Ranges:
EURUSD 1.4568 – 1.4614
GBPUSD 1.6641 – 1.6706
USDJPY 91.31 – 91.78
EURJPY 133.29 – 133.82
AUDUSD 8603 – 8648
Goodluck,
Sam
