- The day opened as a carbon copy of yesterday with JPY crosses sold off up until the Tokyo open.
- The AUD/USD fell from .7925 to .7880 after Deutsche Bank put out a sell recommendation.
- Major buying flow in AUD/JPY on the Tokyo open reversed all negative sentiment
- Nikkei reversed early losses to turn into positive territory
- Chinese President outlines plans for tackling global crisis
- UK treasury seals biggest ever syndicated Gilt sale
- Details emerge on major US regulatory overhaul
- Flow and order book information
Fairly quiet day started with the risk aversion trade in play as yesterday but this has been reversed as the day progressed. EUR/JPY was sold down from an opening level at 133.35 to trigger stops below yesterdays’ low at 132.70. The pair bottomed out just above 132.50. Firstly a major buying flow in AUD/JPY caught the intraday market short in all JPY crosses and then further talk of massive bids in EUR/USD between 1.3650/1.3750 were enough to discourage the JPY cross sellers. This sentiment and trend may continue well into the European open as heavy trailing stops are tipped above 97.30 in USD/JPY and above 1.3950 in EUR/USD.
Bids were noted at 1.3800/05 in EUR/USD and more big bids are rumoured between 1.3650/3750 out of a major Asian player. Strong bids are also rumoured in the AUD/USD around .7850.
Markets: Nikkei +0.7%; HK -flat; Shanghai-flat; Kospi -0.6%; Oil $70/bb; Gold $935/oz.
Ranges: EUR/USD 1.3807/77; Cable 1.6355/1.6441; AUD/USD .7878/.7940; USD/JPY 95.97/96.71; EUR/JPY 132.53/134.18.
