- RBNZ leaves cash rate at 2.5% . Bollard says monetary policy settings remain appropriate. N.Z . exchange rate constraining demand growth. Underlying inflation to settle mid point target range.
- South Korea GDP slowed to 2.4% y/y. 2Q GDP expands 0.4% vs. quarter ago. -ft.
- Japan June corporate service price index -0.3% y/y (expected flat)-MNI
- Shirakawa says Libor problem is serious , could hurt fairness of financial markets. Could lower market credibility amid jitters over Europes debt problems. States Japan has managed financial crisis better than others.
- PBOC set Yuan at 6.3381 vs 6.3429 .
- China shifts course , lets Yuan drop over concerns of their slowing economy. WSJ
- BRC: Food sector drives up UK retail employment. MNI
- US Senate Dems : Onus now on Boehner to avoid ‘fiscal cliff’. -MNI
After starting the session with the RBNZ , we saw a bit of a Kiwi rally over the 0.7900 level , then the market turned quiet . Euro started off just below the 1.2150 level and slowly drifted lower most of the session . Euro found some support just above 1.2125 and strengthened to just over 1.2140 before stalling . Currently we are looking at 1.2130 with a softer feel to it . Usd/Jpy continued to be a non-event ,trading firmly between 78.05/15 , as most of the crosses against the Yen weakened. Aud quietly traded above the 1.0300 most of the session , with sellers waiting around the 1.3045/50 level .
No good feeling at these levels , still like the Aussie , still don’t like/understand the Euro.
Good Luck and Good Night.
