- Moodys downgrades Japanese debt rating to Aa3 from Aa2
- Will downgrade most Japanese banks as well
- MOF makes statement on how it will combat Yen rise but doesn’t explicitly mention intervention
- Japan’s CSPI falls again but easing
- Australian construction work +0.7% QoQ, +1% expected
- New Zealand trade balance better than expected
- Gold rallies $20 after big falls overnight
- Stockmarkets open higher but reverse in afternoon trade
The NZD and AUD led the market higher yesterday but both have had a soft session, drifting lower initially and then being affected by selling in the JPY crosses. AUD/USD 1.0461/1.0529
USD/JPY edged higher in early morning trade on the usual will-they-won’t-they-intervene trade. The announcement of an MOF statement on how they would deal with Yen strength also gave the JPY bears reason to sell more. When there was no specific mention of intervention, the JPY rallied quite quickly especially against the EUR and the AUD. Ranges: USD/JPY 76.51/87, EUR/JPY 110.14/86
EUR/USD closed in NY around 1.4430 and didn’t move for the first few hours of trade. The selling in AUD and NZD hgave the first direction and this was added to by the EUR/JPY selling later on. Ranges: 1.4385/1.4442
Cable 1.6475/99, USD/CHF .7916/42
