- Apple misses targets ahead of new iPhone – FT
- Moody’s downgrades EFSF provisional L-T rating outlook to negative from stable.
- N.Z. June trade balance higher than expected surplus of NZ$ 331 mln.
- Japan June trade surplus of 61.7 bln. Yen , forecast of 140 bln. Yen deficit , lower oil prices were cited. June exports post first fall in 4 mths. on global slowdown.- MNI
- BOJ’s Yamaguchi says BOJ won’t hesitate to ease, cites global growth risk, yen rise. Signs of economic slowing could trigger more action, powerful ease already.
- Australia May Conference Board leading index rises 0.4%.
- Australia June internet job vacancies fall 1.8 %.
- Australia 2Q CPI +0.5% q/q , +1.2%yr/yr slightly lower than expected.
- Australian Treasurer Swan says Australian inflation is contained. Says Australia’s domestic economy is in good shape .
- China end June unemployment and urban unemployment both at 4.1%.
- PBOC sets Yuan at 6.3429 vs. 6.3339 yesterday.
- IMF says China economy headed for a ‘soft landing’. China is well placed to respond forcefully to support growth if needed.
The session opened with the dollar and the Yen both firming against the other currency pairs. Eur/Jpy, Aud/Jpy, being sold aggressively. Euro looked at one point (after Moody’s downgrade ) vulnerable with everyone focused on a possible test of the 1.2000 level . Support at 1.2055/60 held and the Eur continued to climb to the current 1.2075 area. Usd/Jpy saw very strong bids at 78.00 but now hearing stops building below 77.90 and more at 77.60. Offers now up at the 78.50 . Aud tested the 1.0200 level most of the session , breaking through before the CPI number . The low was hit at 1.0177 on a knee-jerk reaction to the number and quickly rallied back above 1.0200 , touching off scattered stops on its way back to current highs 1.0238.
Market awaits any positive Euro-zone news (fat chance of that) to give that 1.2000 level another reprieve .
Good Luck and Good Night.
