- Australian Government Presents New Mining Tax Proposal as new PM Gillard hopes for early approval
- Japanese Manufacturing PMI Falls ( first time in 5 months)
- Euro slides Too Far Too Quickly and gently bounces
- Australian Private Sector Credit and Housing Credit improvements
- Equity Markets off their lows but remain soft: Nikkei – 2.1%, Hang Seng – 0.6%, Shanghai -0.97%, Kospi – 1.05%, AllOrds -1.46%
- Both Gold 1243 and Oil 75.25 quiet
The story of the day is of consolidation and some profit taking after the big moves of yesterday;
EUR/USD found a base at 1.2167 and profit taking in a quiet market has it trading at 1.2217 ( high 1.2223). An assortment of bids mixed with offers between 1.2150 down through 1.2110; watch for heavy stops below 1.2100.
EUR/GBP is 25 points above the low of 0.8084 at 0.8109 and may attract month end buying exacerbated by a short market; EUR/CHF is better bid in the middle of a session range at 1.3210; good bids down at 1.3100/20.
EUR/JPY has similarly traded in a 65 point range 107.69 – 108.34, currently at 108.28
CABLE is likely to range 1.5000 to 1.5100 with stops either side. No orders of note unless we test the sovreign sell orders at 1.5250/85 !
USD/JPY has ranged quietly 88.38/69; buyers ahead of 88.00, heavy stops below but Kampo rumoured to appear 87.50/75
AUD/USD was unaffected by good Private Sector and Housing Credit numbers due to heavy risk-off selling from the last 48 hours; we have seen some reversal but expect selling at 0.8550.