- U.K. BRC shop price index rose 1.0% in September.
- Australia AiG performance of service index fell to 41.9 in September from 42.4.
- Australia August HIA new home sales fell 5.3% from month ago, a 15 month low.
- China September non-manufacturing PMI fell to 53.7 from previous 56.3.
- Australia August trade deficit rises to 2.027 bln ( survey -685m, prior -556m, revised -1.53 bln).
The dollar maintained a firm tone during most of the session as concerns over Spain and Greece continue to haunt the EU. The main focus of the market was the continued pressure on the Aussie dollar as worse than expected trade numbers and a weak China non-manufacturing PMI number did little to change its bearish tone. Traders are now expecting the benchmark rate to be reduced to 2.75% or lower by the beginning of next year. In the meantime we still have the ECB and BOJ to make up their minds later this week concerning cuts of their own.
EUR/USD drifted lower from the opening highs of 1.2920 to session lows at 1.2890. We have strong support at 1.2870/80 with solid resistance up at 1.2960/75.
USD/JPY had almost a 20 pip range tonight (yeaaa) trading to a high of 78.30with session lows at 78.11. Good bids at 78.00 with offers up at 78.85/90.
AUD/USD started the session on the highs at 1.0265, but failed to push through stops reported above at 1.0270. A battle just above the 1.0250 (barrier) kept it stable until the weight of the disappointing numbers finally saw it break to the lows of 1.0217. Some buying interest (profit taking) coming in at this 1.0220 level, but feeling as if we could test lower to the next target of 1.0160/65.
Have a good day and good luck.
