The highlight reel is empty today after a very quiet trading session. The upcoming extended holiday period for Chinese New Year was the main reason for quiet trade.
- Japanese January consumer confidence index 39.0, up from 37.6 in December
- Sino-US relations continue to cool with the Chinese calling on the US to cancel the Obama meeting with the Dalai Lama. This is coming on top of tensions relating to Taiwan and the Yuan value.
- NZ housing market remains in a slump
- Regional equity markets were mixed to slightly positive
- Gold slipped slightly, trading in step with the EUR/USD again
The AUD/USD did not enjoy anything like the volatility of yesterday. It opened close to its session highs above .8900 but strong technical resistance at the .8915/30 level encouraged profit taking and the pair slipped back as did AUD/JPY. Range: .8880/.8915
EUR traders were glad of any excuse not to trade and the lack of any new information from the EU or ECB ensured that the single currency was relatively quiet. EUR/JPY has slipped gradually during the session as Chinese and Japanese accounts squared up before the long holiday period. Ranges: EUR/USD 1.3655/96; EUR/JPY 122.42/97
USD/JPY has also slid gradually lower during the session and early morning rumours of big sales never materialised. Range: 89.60/84.
Cable has traded in a 1.5665/1.5705 range.
Markets: Nikkei +0.8%; HK +0.3%; Sydney flat; Kospi -0.5%. Gold -$4 at $1090.50.
