- Large option barriers seen at 1.3000 in EUR/USD, with more down to 1.2900
- Optionality at 100.00 in EUR/JPY also attracting market
- Australian consumer sentiment falls 8.3%
- China reportedly buying AUD/USD below 1.0000
- EUR risk events today: Finnish no-confidence vote and Italian 5-year bond auction
- MAS survey sees SGD strengthening in 2012
- Risk of Chinese slowdown rises: Conference Board
- Nikkei -0.5%, other regional bourses flat
- Gold $1640/oz; Oil $100/bbl
Once again a forgettable trading session in Asia with only the AUD/USD again showing some volatility.
AUD/USD closed in NY at 1.0025 and dealers were intent on taking it below parity so see if more stop-loss sell orders could be triggered. If there were any, they were small, and reports of Sovereign buyers, including China, soon had the shorts running for cover. The rest of the session has been spent in sideways trading at 1.0020. Range: .9978/1.0030.
In EUR/USD, Asia never had the firepower to threaten well-protected barriers at 1.3000, and we couldn’t get below 1.3013, even when the AUD/USD was running lower. Bounces have again been shallow with bears in control. Ranges: 1.3013/45
USD/JPY 77.90/78.04; USD/CHF .9439/69; Cable 1.5465/95
