- NZ Q3 current account better than expected at NZ$-1.4 Bln.
- Reuters tankan survey sees Japanese Dec manufactures’ confidence up.
- China Think tank sees exports higher by 6% in 2010 and retail sale up 18.5%.
- French Prime minister urges China to be more flexible with its exchange rate.
- Gold trading at 1093.50
- Asian bourses up, ASX200 and Nikkei up over 1%, Shanghai currently down 0.6%.
The USD pressed on higher today, with USDJPY holding above the technical breakout of 91.00, to move up towards 91.50. Morning offers at 9120-25 were easily absorbed as a prominent US name was seen aggresively buying up thru 91.30 post fix and triggering stops in the process. However Asian sellers at 91.50 still remain and have not yet been tested. USDJPY settled back towards 91.30 for the remainder of the afternoon.
EURUSD saw a move back to the mid 1.42’s in reponse to the USD buying, continuing lower from where NY left it. Talk of option barrier buyers at 1.4750 discouraged any further selling for a move slightly higher to 1.4290 in the afternoon. This coincided with France’s prime minister speaking in Beijing, saying that any disparity between EUR & USD is not related to any economic disparity between Europe and the USA. Still, the EUR was unable to regather the 1.43 handle. There was also demand for EURJPY buying on the back of USDJPY post fix, holding the 130 area to trade up to 130.70 and in turn helping support the EURO.
AUDUSD, which closed below the 100 day MA in NY, saw a mix of CTAs and model funds selling, pushing it back towards 8780 first time. The small rally back up above 88c was met with even more aggresive selling, this time hitting it down thru 8780, taking out some weak stops to trade into the 60’s. Local buyers ahead of 8750 emerged, helping the AUD consolidate for the rest of the day between 8770-90.
Ranges:
EURUSD 1.4263 – 1.4297
GBPUSD 1.6028 – 1.6076
USDJPY 90.95 – 91.47
EURJPY 129.93 – 130.71
AUDUSD 8762 – 8816
