- Australian June retail sales -0.1% MoM, +0.4% expected
- Trade balance +AUD$1.95 billion
- Regional sharemarkets fall by up to 3% on increased risk aversion
- Moody’s affirms US AAA rating but says outlook negative
- PBOC calls on US to protect safety of Treasuries
- Gold posts new record high at $1662/oz
The Asian FX market has been reasonably quiet again and it’s been the AUD which has again been the main mover.
The AUD fell early after closing in NY near 1.0780. A bearish technical break in AUD/NZD added to the selling pressure and the fall in regional sharemarkets upped the level of risk aversion. AUD/USD fell to 1.0720 before steadying pre-ratail sales. The disappointing number encouraged more AUD selling before it finally stalled near secondary trendline support. Range: 1.0674/1.0786
EUR/USD has played second fiddle with traders showing little interest in getting involved. It has mainly moved in line with the AUD/USD. Ranges: 1.4159/1.4208, EUR/CHF 1.0833/98
USD/JPY has also been quiet inside a 77.14/40 range. Risk aversion weighed on the JPY crosses but the market is still wary of intervention in USD/JPY and was happy to buy dips there. Range: 77.14/40
USD/CHF traded .7631/84, Cable 1.6249/94, and EUR/GBP .8703/29
