- Japan December PMI rises to 53.8.
- JAL shares smashed, down over 30% on the back of bankruptcy worries.
- Speculation that countries sharing the european currency may be downgraded.
- S&P says Japan rating could be cut if it fails to stabilize huge debt.
- Japan government aims for an average of over 2% GDP growth over the next decade.
- Asian bourses seesaw in small range, ASX200 down 0.2%, Nikkei flat, Kospi up 0.2%. Shanghai up 1%.
- Gold retreats but holds 1090 level. Last at 1094.
USD continued it move higher today in Asia, consolidating at the highs. It was a slow move up as USDJPY started chewing thru the offers between 92.10 – 92.30, trading to a high of 92.27 so far. Standing Asian exporter sell orders line the 92.30 area and are scattered all the way up towards 93.00, thus the slow move up in Asia.
EURUSD drifted off in response to the broad US dollar move higher, falling thru 1.4330 support and triggering stops below 1.4320, with model funds and technical traders seen selling after the bearish outside day chart formation yesterday. A wall St Journal article speculating that countries sharing the European currency may be downgraded also added some fuel to the fire. EUR saw some light bids hold it above 1.4300 for a small bounce back to 1.4320. EURJPY drifted off on the back of the EURJPY selling but found support under 131.90 via a bid USDJPY.
AUD followed the EUR lower slipping thru the neckline support at 8930-40 area and stops under 8920 were tripped as well. Choppy market with thin liquidity has seen shorts taken out overnight and longs parred back today.
Ranges:
EURUSD 1.4303 – 1.4359
GBPUSD 1.5878 – 1.5916
USDJPY 91.88 – 92.27
EURJPY 131.77 – 132.10
AUDUSD 8900 – 8950
