- RBA minutes: Arguments for June 5 cut were ‘finely balanced’
- G20 draft: Countries with spare fiscal space will boost demand if conditions deteriorate
- G20 will be vigilant on oil prices
- Democratic Left could join Greek coalition on Tuesday
- White House: Obama encourage by European direction on crisis
- Hilsenrath: Fed concerned about access to credit
- Japan econ minister: Tensions eased after Greek election
- Japan PM Noda: Tells G20 yen is rising rapidly, driven by speculators
- DJ: China to add $43B to IMF, total IMF commitments at $456B
- Nikkei -0.26%
- EUR leads, USD lags
Slow march from 1.2575 to 1.2612 in EUR/USD. The Fed story and some optimism about Greece were the drivers. Offers at 1.2610 were breached with more at 1.2650.
There is some talk about disappointment with the G20 that might hurt early European sentiment but I can’t believe that any reasonable person expected the G20 to come to the rescue.
USD/JPY was flatlining around 79.10 then quickly fell to 78.95 as the Fed story hit and then chopped sideways once again.
The RBA minutes were the main event of the day and the takeaway was less-dovish than expected. AUD/USD initially spiked to 1.0140 but offers from there to 1.0155 capped the move on the first push.
Overall, modest risk appetite but a conviction-less market.
