- Australia July new home sales fell 5.6 % , just a reminder that housing construction remains one of the weakest sectors of the economy.
- Japan government downgrades economic assessment , economy in moderate recovery led by rebuilding after earthquake , some weak movements seen recently -MNI .
- Azumi sees possibility of government funds drying up , cites parliament’s delay in passing deficit-financing bill.
Market showing signs of weaker demand for risk as most Yen crosses are trading near/at session lows . Continued talk of China’s slowing economy , commodity price declines, and low expectations coming out of Jackson Hole picked up demand for the safe haven assets. Trading was still range bound after the initial move down and remains comatose at the lows of the session .
EUR/USD began near the highs of the day above 1.2500 but drifted lower on lack of fresh news. Buyers could not hold the 1.2480 level but found good interest at 1.2465/70. The bounce has been limited to 1.2480/85 and is consolidating here . Key support level is 1.2445 with stops below. Talk of an option expiry at the 1.2500 level today. Resistance up ahead of 1.2590 through 1.2600.
USD/JPY started at the highs of 78.75/77 consolidated for quite some time , then quickly sold off to session lows of 78.51. Key support comes in at 78.35, then major support at 78.00/10. Resistance remains up at 78.80 through 79.00
AUD/USD continued to struggle after falling from 1.0370 to a low of 1.0345, talks of selling being Tokyo fix related . Stops were not triggered below the 1.0350 level , but has yet to recover back above 1.0360. Offers remain up at 1.0400, with the downside remaining vulnerable again .
Have a Good Day .
