- New Zealand current account deficit 2.9% GDP, worse than expected
- Japan’s Feb trade balance comes in at JPY 651 billion
- Regional stockmarkets gain about 0.5% on average
- Gold holding steady above $1100
- EU Finance Ministers highly critical of inner workings of EU and the divergence amongst EU economies.
EUR/USD closed in NY just below 1.3500 which many saw as a bearish sign. The first move was down to test the supposed strong bids around 1.3430. 1.3445 held first time round but this key support proved no match for Euro bears late in the Asian session following the release of a Handelsblatt article in which EU Finance Ministers are reportedly highly critical of the inner workings of the EU. Option DNT bids at 1.3400 have held so far but a break appears imminent once Europe gets up and running. Range: 1.3403-1.3505
USD/JPY again traded in a quiet range. Tiny gains on the Nikkei failed to encourage any buying on JPY crosses but JPY repatriations are also dwindling, ensuring some very quiet trade. Ranges: USD/JPY 90.40-90.60
The AUD/USD closed strongly in NY close to .9200 but failed to generate any major momentum today. Euro weakness proved a drag with the pair closing in Asia near its lows. Range so far 0.9165-0.9197
Cable down sharply falling in line with the weak Euro — range so far 1.4980-1.5038
Markets: Nikkei Kospi HK Shanghai were up smalls but gains were capped by the weak EUR/USD (risk-off) today. Gold flat.
