Very few headlines emerged in an extremely quiet Asian trading session
- China advises it’s steel mills to cut back production by up to 30% to address over capacity and perhaps in reaction to what it sees as speculation on it’s account
- RBA Governor Stevens sees a continued global recover through 2009 and thinks Australia is well positioned to benefit
- The US is starting to take new initiatives to limit fuel emissions
- GM bankruptcy now considered almost inevitable
- Regional bourses rallied between 1% and 3% after strong moves in Europe and the US yesterday
- China and Brazil may trade with each other ex USD
- Japans industrial production rose 1.6% in March on a seasonally adjusted basis, revised data showed
EUR/USD closed in NY around 1.3560 and the range for the first 3 hours was 53/63. This gives a good indication of the lack of interest shown by the Asian market. Profit taking by early Tokyo and reports out of China regarding a cut back in steel production led to some early pressure on EUR/JPY as it fell from it’s opening level around 130.60 to it’s session low at 130.15. There were apparently no shortage of buyers around the lows as shorts looked eager to cover. Most pairs have bounced back to their opening levels and EUR/JPY has made new highs for the session towards 131.00.
Orders: Stops in EUR/JPY above 131.25; Sell orders in EUR/USD around 1.3600 and buy orders at 1.3460/80;
Markets Nikkei +2.8%; Hang Seng +2.5%; Shanghai +1%; Kospi +1.6%. Gold steady at $921/oz; Brent crude unchanged around $58.50.
Ranges: EUR/USD 1.3531/79; USD/JPY 96.13/62; AUD/USD .7630/85; Cable 1.5295/55; EUR/JPY 130.15/131.04
