- Japan household spending rises 2.6% YoY in August.
- Japan August jobless rate come in better than expected at 5.5%.
- Australia Inflation gauge unchanged in September.
- Fujii says he prefers stable forex market and that he wont bring up the issue of a strong Yen this weekend at the G7. USDJPY trades down to 89.20.
- Asian stockmarkets hit hard, Nikkei down over 2.5%, ASX200 -1.9%, Kospi -1.7%. Shanghai an expection, up 0.9% at the moment.
- Gold trading at 1000.50.
- Oil down 17c from NY settlement at $70.82.
With a weak lead from Wall St, its biggest fall in 3 months, Asian bourses quickly followed prompting risk aversion in Forex markets in early Asia. EURUSD was pushed lower, with the market looking to trip stops under 1.4500, but broad based demand provided a base at 1.4500 and shorts were forced to cover, trading back to the NY closing level. Markets have been spooked by Goldman’s revised 250k jobs number and doubt if there will be a renewed attacked on the USD before the NFP number is released.
USDJPY saw some demand into the Tokyo fix as did EURJPY as shorts covered. But sellers were dominant with an eventual push down thru the bids at 89.35 and tripping weak stops below, as Fujii said he will not bring up the issue of a stronger Yen this weekend at the G7 meeting. EURJPY saw a rally back above 130.00 only to run into fresh selling at 130.20.
AUDUSD had a relatively quiet day after the bearish formation yesterday, consolidating between 8660 and 8720. Good bids are noted down at 8600 as are fresh sellers back above 8720 and towards 8750. Once again, the next move will depend on the NFP number.
Ranges:
EURUSD 1.4500 – 1.4546
GBPUSD 1.5880 – 1.5944
USDJPY 89.19 – 89.60
EURUJPY 129.59 – 130.44
AUDUSD 8668 – 8713
Goodluck,
Sam
