- Australian July leading economic index improves in July.
- Japanese PM inaugurated, cabinet appointed.
- Gold higher at 1009.00
- Asian stockmarkets higher except for Shanghai, down 2.5% at one stage.
- Massive offers between 14680-1.4700 in EURUSD. Traders suspect Asian sovereign names and option related sellers.
Not much in the way of economic data today, with the FX market taking its cues from overnight moves and comments from Ben Bernanke. EURUSD grinded higher but ran into a truckload of offers above 1.4680. Talk is that there are Asian sovereign names and option related sellers on top towards 1.4700. The Shanghai Index plunged 2.5% at one stage, but the retreat was very minor, causing traders to trim longs and take some profits.
USDJPY had a soggy feel to it today, spending most part under 91.00. Importer bids back towards 90.70 stopped any further slippage. Traders were reluctant to take on new positions with the new government sworn in and a string of holidays coming up. EURJPY traded in a 40 pip range and took its cues via EURUSD. There was some demand heading into the fix which continued post fix, but overall a dull day, trading in a 40 pip range and tracking EURUSD.
AUDUSD continued to grind higher taking out some weak stops above 8650 early morning but retraced once the Shanghai Index plunged lower. This only gave traders an opportunity to buy on the dip, moving back up above 8660 as we speak. Talk of 8700 sell orders with stops above.
GBP continued its bad overnight form, staying under pressure for most part of the day as EURGBP buyers continued to take the cross higher. It traded up from 8880 and towards 8920, a good range for an Asian time zone. Technical traders are calling for a move down towards 1.6300.
Ranges:
EURUSD 1.4655 – 1.4683
GBPUSD 1.6449 – 1.6513
USDJPY 90.76 – 91.06
EURJPY 133.23 – 133. 66
AUDUSD 8623 – 8667
Goodluck,
Sam
