- Canadian International Trade Minister Fast says Petronas decision not a precedent for Cnooc-Nexen.
- German September tax revenues rise 4.2% on year.
- U.S. group to encourage China-Japan talks over ‘Islands’ row.
- Japan September trade deficit at Y558.6B. Exports fall 10.3% (exports to China down 14.1%y/y).
- BOJ Governor Shirakawa says Japan’s economic growth leveling off , BOJ pursuing powerful monetary easing.
- Japan’s Economy Minister Maehara says the country needs more monetary easing and policy stimulus.
- Australia’s Swan flag significant MYEFO cuts, expecting to slash public spending by $3 billion.
- Australia’s Swan cuts projected surplus to $1.1 billion.
- Australia’s Swan says storm clouds are hanging over global economy.
- Moody’s says EU banking agreement falls short, accords credit negative for weaker European sovereigns.
Quiet start to the week as the dollar stayed in a narrow trading range most of the session. Worries over the last minute Canadian rejection of the merger between Petronas-Progress Energy had no effect on the Canadian dollar during this time zone. The market is ending the session with a slight ‘risk on’ tone to it.
EUR/USD started the session near the lows of the range find a good bid down around the 1.3015/20 level. Some offers are ahead of resistance at 1.3065/75 with the high today reaching 1.3050 capping the rally.
USD/JPY stayed in a very narrow range, 79.35 high, 79.22 low, despite poor trade numbers and expectations of easing by the BOJ.
AUD/USD found buyers around the 1.0300/10 level but has been unable to get above 1.0325 so far this session. With government tightening on fiscal policy and a November rate cut expected the AUD/USD has done well to hold these levels.
USD/CAD stayed near the highs of 0.9943/48 most of the session but has now turned lower to 0.99.25/30 following the ‘risk on’ tone.
Have a good day.
