- Krugman sees 30-40% chance of recession in H2 2010.
- Australia new home sales up 0.3% in November.
- CFTC: Dollar spec positions incresed to $4.76 bln.
- China official says Yuan to face new round of appreciation.
- Nikkei rises to 15 month highs, up 0.8%, ASX200 up 1%, Kospi flat.
- Gold higher at 1123.50.
- USDKRW hits multi month lows.
Yen cross selling once again prevailed throughout the Asian session. There was USDJPY and Yen cross selling into the fix which continued throughout the day, pinning back the majors. The dollar was also under pressure from fund managers looking to build their new year portfolios by buying stocks, commodities and high yielders. USDJPY fell from the 92.50 area all the way back to sub 93.00, as traders continued to trim long USDJPY positions. Buyers at 91.90 held USDJPY temporarily until stops beneath were tripped sending back to the 91.50 area. Like yesterday,Yen cross selling pressure saw EURJPY drift off under 133.00 and back towards the 132.50-60 area, before the next bout of selling sent it straight down to 132.20, triggering stops in the process.
EURUSD drifted of on the back of EURJPY selling but found buyers ahead of 1.4400 to see an afternoon bounce back up to 1.4440. Still 1.4460 is the level on top, with good sellers reported.
AUDUSD saw a consolidation type day, which usually happens after such an upmove. Sellers via AUDJPY weighed on the AUD, but local demand ahead of the 91c area has held, with traders weary of the Asian session moves.
Ranges:
EURUSD 1.4402 – 1.4443
GBPUSD 1.6064 – 1.6137
USDJPY 91.62 – 92.55
EURJPY 132.22 – 132.46
AUDUSD 9113 – 9163
