- The evening and night of the long daggers produced Australia’s first female Prime Minister, Julia Gillard
- Australian sharemarket and the AUD rise on hope of compromise on resources tax
- Japan’s May trade figures shows slow down in exports
- Asian stockmarkets rise by 0.5%, Gold steady below $1240/oz
The AUD has been the most volatile currency today in the light of political developments which have led to a change of Prime Minister. Kevin Rudd was ultimately dumped for not being inclusive enough in the decision making processes. The AUD/USD rallied immediately on the news, from .8750 to .8770, then fell back to .8725 before steadying. Ranges: .8725/.8771
Cable has been busy today trying to take out what is either an option barrier around 1.5000 or else a decent sized sell order. 1.5000 has ben the high. The GBP remains in demand on the crosses and is looking to form major interim bases against the commodity currencies which might explain the GBP/AUD buying by ACBs seen last night. Ranges: 1.4955/1.5000, EUR/GBP .8222/34
EUR/USD closed in NY around 1.2320, tried the down side first but after failing to break below 1.2300 has subsequently rebounded. Stops above 1.2365 remain safe for now. Ranges: 1.2298/1.2353
USD/JPY has been extremely quiet in a 13 pip range and the market ignored the relatively disappointing trade data. Ranges: 89.85/98, EUR/JPY 110.59/111.01
Markets: Nikkei +0.6%, HK +0.2%, Sydney +0.3%, Kospi +0.6%. Gold steady at $1237/oz.
