- RBA Governor speech is still bullish on China, wary on EZ and US, says no need to change policy in times of upheaval
- Fed’s Bullard: Ready to act if economy weakens or deflationary risks rise
- Japan July core CPI +0.1% YoY
- Major asset rebalancing expected tonight, out of bonds into stocks
- Japan PM expected to resign today
- Japan EconMin Yosano: Intervention is necessary weapon which cannot be used frequently
- Stockmarkets -0.25% on average
- Gold moves slightly higher $1778/oz
The market has again been fairly quiet with most big players staying away ahead of the Bernanke speech at Jackson Hole later tonight.
AUD/USD was the first mover of the day, moving higher after the Glenn Stevens speech cast some doubt on when and by how much the next rate cut will be. Those who had anticipated 50bps in September can probably reassess after he said that policy shouldn’t change during times of upheaval. Ranges: 1.0414/1.0501
EUR/USD moved higher in sympathy with the AUD/USD. The market closed in NY near 1.4370 and with reports of bids just below that level, dealers were easily convinced to try the topside first. Offers reported near 1.4420/25 should keep the pair in range trading mode until Mr Bernanke says his piece. Ranges: 1.4368/1.4416
USD/JPY finally broke out of its range pattern near 77.00 but looks to be settling into another one on a slightly higher plane. Ranges: 77.24/50
Cable 1.6276/1.6315, USD/CHF .7920/45
