- AUD/JPY and GBP/JPY both fall significantly
- Australian Q3 CPI as expected
- China pension fund says US may not be able to keep USD stable
- Australian skilled vacancy index +1.9%
- Talk of more Treasury cash for GMAC
- Regional bourses lose between 1.5% and 2.5%
- Gold regains some ground despite the fall in AUD/USD etc
The AUD/USD jumped to .9200 after the CPI number but it looks like hedge funds are now starting to book profits, sensing that the move might be running out of momentum. Sellers hit the market after the number and again below .9110. Buyers are seen now at .9060/70 with heavy stops below .9050.
USD/JPY was also quite active, falling almost to .9100 on heavy selling of AUD/JPY in particular. EUR/USD had been fairly steady and has regained some ground on the crosses against the AUD and GBP during this session. GBP/JPY has also come in for some selling from hedge funds and Japanese accounts. The talk yesterday of biggish offers in the cable at 1.6425/45 has been verified and I’ve also heard rumours of some very large stops building on the downside but no firm levels.
Ranges: EUR/USD 1.4789/1.4826; Cable 1.6338/1.6405; USD/JPY 91.08/83; AUD/USD .9072/.9207; GBP/JPY 148.95/150.40.
Markets: Nikkei -1.5%, HK -1.6%, Kospi -2.5%, Sydney -1.6%. Gold +$4 at $1040/oz. Oil 79.25.
