- RBNZ signals it may raise rates earlier than expected.
- Japan October machinery orders fall 4.5% YoY.
- Japan November CGPI -4.9% YoY.
- Australian November employment figures better than expected, +31200.
- Good demand for USDJPY heading into fix, but fizzles out in the afternoon as Asian bourses trade down.
- Asian stockmarkets lower, Nikkei down over 1.4%, ASX down 0.8%, Kospi down 1.1%. Shanghai reverses earlier gains, into negative territory as well.
- Gold lower at 1125.
- BOJ says will offer 800 Bln Yen at 0.1% starting 14th December.
It was NewZealand that started the early morning volatility with the RBNZ turning hawkish, saying that it may have to raise rates earlier than expected. The comments lifted the NZD from 7130 all the way to a high of 7255, taking the AUD and EUR higher with it.
Good demand for USDJPY and Yen crosses at the Tokyo fix, coupled with a good old fashion short squeeze helped lift EURJPY up above 130.30, taking EUR with it towards 1.4860. USDJPY traded up to 88.40 on the demand but all was short lived post fix, as Asian bourses weighed on risk, reversing early gains. EURJPY buyers pulled their interest at 129.90-00 on the way back down, trading all the way back to test the 129.00 area.
EURUSD stops above 1.4785 was all the talk but the inability to sustain the early morning rally and take out the selling interest ahead of 1.4780, saw traders take the foot off the pedal for a move back to 1.4700.
AUDUSD jumped on the back of the NZD then again on the employment figures, which came in much better than expected. AUDUSD jumped from 9105 to 9160 immediately after the data. However AUDJPY sellers at 81.00 and the selling interest ahead of 9180 weighed on the local currecy sending it back to 9120 late afternoon.
Ranges:
EURUSD 1.4697 – 1.4759
GBPUSD 1.6246 – 1.6323
USDJPY 87.77 – 88.39
EURJPY 129.07 – 130.35
AUDUSD 9079 – 9170
Goodluck,
Sam
