The words ‘deader than disco’ spring to mind. 15/20 pip ranges in the majors and it felt even tighter than that.

  • The New Zealand consumer confidence index came in at 127.6 in May, down from 133.5 last month;
  • Anti-European party fared badly in Dutch elections for the European parliament;
  • The Nikkei rose by another 1%, the Hang Seng was flat and Gold traded around $1295/oz after making gains overnight.

There were only a few minor flurries worthy of note.

The USD took on a bid tone across the board as soon as Tokyo opened with USD/JPY trading up to 101.85, AUD/USD falling below .9220 and EUR/USD again testing levels near 1.3640. Japanese exporter offers were very solid indeed near the session highs and momentum soon dropped away. USD/JPY range 101.70/85.

The AUD was the next mover, with some AUD/NZD flows helping the AUD move higher and forcing any intraday shorts to exit in slow markets. There were no news developments, simply pre-weekend positional adjustments. AUD/USD range .9215/48.

EUR/USD had its usual tight Asian ranges and failed just marginally to test the 200-dma, which so many traders are now watching. EUR/AUD has drifted lower from 1.4805 to 1.4765 and the EUR/USD range has been 1.3639/53.

Thanks for your company this week and it’s been really nice catching up with some old friends