- CAD rallies after Conservatives win convincing election victory; EUR/CAD falls 100 pips on day
- China services PMI 62.5 in April, up from 60.2 in March, signifying strong growth in services sector
- Regional stocks fall on general risk aversion as investors worry of terrorist revenge attacks
- Gold $1546/oz, Silver $45.20/oz
- Japanese financial markets closed for public holiday
Fairly quiet session minus Tokyo but the general air of risk aversion has seen precious metals make some small gains, equities fall by around 1% in many centres, and the JPY crosses fall with the exception of CAD/JPY.
EUR/USD opened near its session highs but has been impacted by EUR/JPY and EUR/CAD selling. It fell towards the bottom of its consolidation range near 1.4770 but talk of Asian central bank bids just below the market helped stall the fall. Ranges: 1.4769/1.4827
USD/JPY has slid slowly lower amid the selling in EUR/JPY and AUD/JPY but has again been unable to establish a foothold below 81.00. Bounces have nevertheless been small. Ranges: 80.97/81.27, EUR/JPY 119.72/120.44
Cable was at time quite weak as trailing stops were triggered below 1.6620 and 1.6600 but EUR/GBP selling ahead of .8920 helped support the pound. Ranges: Cable 1.6584/1.6660, EUR/GBP .8880/.8916
The AUD/USD drifted lower throughout the day on the risk-aversion theme. After opening at 1.0950 it fell to a low at 1.0886 before stabilising pre-RBA. 1.0886/1.0952 pre-RBA range.
