• Moody’s adjusts Ireland’s country ceiling to A3, from AAA, also Portugal to BAA3 , from AAA.
  • S. Korea 2nd qtr GDP revised downward to 0.3% q/q from 0.4% and 2.3% y/y from 2.4% . BOK feeling pressure to cut rates again .
  • Goldman cuts China 2012 GDP forecast to 7.6% from 7.9% , cuts S. Korea 2012 GDP forecast to 2.6% from 3 % and 2013 to 3.5% from 3.8%.
  • Australia August employment change fell 8.8 k (forecast was +5k) , unemployment rate also fell to 5.1 % from 5.2% (forecast 5.3%) with participation rate down 0.2% to 65.0%. A mixed softer report with the participation rate being the key .

Later today you have the ECB with Super Mario saving the EU , maybe even the world . In the next few weeks/months we now have possible cuts coming from the ECB ,FED, BOE by year end , PBOC, BOK, and now with the weakish Aussie employment number a possible cut in October . So much stimulus to look forward to this fall (almost wishing for a return of summer here ) . Aside from some choppiness in the AUD/USD the market consolidated near opening levels .

EUR/USD remained firm most of the session consolidating above the 1.2600 level . We saw a low of 1.2593 and high of 1.2620. Selling remains above 1.2630 through to the rumored barrier at 1.2650.

USD/JPY was a non-event , how unusual, 78.38 to 78.47 says it all.

AUD/USD again the highlight of the evening , spending most of the pre-employment numbers consolidating around 1.0180/90. First sighted was fall of 8.8k employment change sending it to low of 1.0164 but knee-jerked back up to 1.0195 on the fall of 0.1% to 5.1 % employment rate . A good amount of short-covering took place sending AUD/USD firmly through the 1.0200 level . Good selling interest here at the highs of 1.0225/35 with more up through 1.0250/60.

With the ECB bond plan leaks out of the way would look for further consolidation around these levels till U.S. employment numbers on Friday (unless there’s another leak , NFP down 200k

:)

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Have A Good Day >