• NewZealand August retail sales +1.1%, well above the expected +0.5%. NZDUSD jumps 40 pips.
  • NZDUSD jump triggers buying in AUDUSD and EURUSD follows.
  • UK September retail sales +2.8% YoY.
  • UK RICS house price index sees biggest jump in over 2 years.
  • GBP trades higher to 1.5825 on the back on the numbers.
  • Japan September Bank loans +1.6% YoY.
  • Japan September M3 money supply up 2.2% YoY.
  • Australian September business confidence slips.
  • Asian Bourses mixed, with traders cautious ahead of key US earnings this week, ASX200 up 1%, Nikkei up 0.7%, Shanghai up 0.9%, Kospi down 0.3%.
  • Gold slightly lower at 1054.00.
  • Talk of USDJPY option expiries at 90.00 and 90.50.

The NZDUSD and the GBPUSD were the catalysts for the moves higher in the other majors today. Good retail sales numbers out of NZ saw NZD pop 30 pips, only to see AUD follow, to put in a new high just below 91c for 2009. Throw in better than expected UK data and you have GBP running up towards 1.5830 and EUR attempting to break thru 1.4800. However with investment banks selling AUD just ahead of 91c (believed to be option related selling), coupled with less than convincing confidence numbers, the AUD slipped back as traders trimmed longs. Still, bids were seen ahead of 9050 on the pullback.

EURUSD followed the GBPand the AUD higher but was unable to break thru 1.4800, repeat fails, making longs a touch uncomfortable. Bids reported ahead of 1.4750.

USDJPY grinded its way higher today attempting to break thru 90.00 as USD attempted a come back mid morning. Technical sellers just above 90.00 along with exporters offers stopped the move higher, pushing USDJPY back to NY closing levels. EURJPY took its cues from USDJPY, staying bid above 132.50 but will need either EURUSD or USDJPY to break up before another attempt at 133.50.


EURUSD 1.4761 – 1.4799

GBPUSD 1.5759 – 1.5825

USDJPY 88.60 – 88.98

EURJPY 132.51 – 132.90

AUDUSD 9055 – 9095