• IMF cuts global growth forecast, warns of rising risks.-MNI
  • Juncker says Greece must implement measures by October 18.
  • Moody’s assigns ESM Aaa/prime 1 rating, outlook negative.
  • New Zealand 3rd qtr business confidence at 8.0, improves from minus 4 in 2nd qtr.
  • New Zealand card spending falls 0.6%, signs consumers remain cautious on slowing economy.
  • New Zealand QV September house prices rose 5.3% y/y.
  • Greek FinMin Stournaras says Greece got board support at euro-area meeting. Needs deal on more aid within weeks.
  • U.K. RICS September house price balance at -15 from a revised -18.
  • U.K. BRC September retail sales monitor rose 1.5%.
  • Japan adjusted current account at Y722.3B, a/c balance rose 4.2%.
  • Japan August trade BOP basis deficit rose to Y644.5B.
  • Australia NAB September business conditions fell to -3, confidence rose to zero.
  • RBA’s Lowe says higher A$ helped balance economy during mining boom.
  • IMF says U.K. should defer spending cuts if growth disappoints.
  • State Street charges 0.25% for Franc deposits as BNY sets Krone fee.
  • Japan/S.Korea agree to let a bilateral currency swap arrangement expire at the end of October. Agree to cooperate when necessary.

The session had a ‘risk-on’ tone to it as all commodity currencies gathered steam and are now trading at their highs for the day. Remarks by the IMF highlighted the continued worries about global growth forecasts being cut with no one being spared.

EUR/USD traded in a narrow 20 pip range, showing some bounce to it as buyers of EUR/JPY out of Tokyo were seen. The opening lows of 1.2965 provided some support but has struggled to make any headway in front of good selling interest at 1.2990/95. Talks will continue today over Greece and Spain, plus you have Draghi speaking to a European Parliament panel in Brussels. Hopefully the protest in Greece aren’t to loud so Merkel can work on some details with Stouraras over a nice glass of ouzo.

USD/JPY traded in a narrow (surprise) range, 78.41 high, 78.21 low. Good buying below at 78.00/10, with sellers above at 78.50/60, keeps the range intact.

AUD/USD found a very good bid down at 1.0150 yesterday that provided it with some support through out the session. A jump in iron-ore prices, scattered short-covering, profit-taking on crosses, a 2% rally in the Shanghai composite, all added to its rise to session highs of 1.0246. Rumors out that the carbon tax might be reduced along with forecast now of another 0.25% rate cut come November. Hearing real money funds are on top at 1.0250, so there’s your support/resistance for now.

Have a good day.