- BOJ keeps policy rate steady at 0.1/0.1%; no new easing measures announced
- China trade balance +US5.3 billion; imports +5.3% YoY, exports +8.9% YoY
- Australian business conditions index +1 to 4, business confidence index +2 to 3
- Australian job ads +1% MoM
- Australian building industry still struggling; report
- South Korean government expected to spend almost US1.5 billion of surplus buying back government debt
- Fed Chairman makes no mention of monetary policy in Atlanta address
- RICS UK house price index -10, best in nearly 2 years
- Mixed results on regional Bourses with Nikkei +0.75%, Kospi +0.25%, Australia -0.6% and both HK and Shanghai -1%.
- Gold $1650/oz; Oil $102.50/bbl
Theer hasn’t been much movement overall despite some great expectations ahead of the BOJ and Chinese trade data risk events.
USD/JPY moved gradually higher through the morning after opening at 81.55. Risk sentiment was positive as the market hoped for positive Chinese data and perhaps another BOJ surprise. Only one was forthcoming and the market fell back after the BOJ announcement. Ranges: USD/JPY 81.47/85; EUR/JPY 106.84/107.46
AUD/USD moved higher through the morning as the positive risk sentiment and decent local economic data encouraged buyers, especially in AUD/JPY. The highs were reached just after the Xinhua agency ‘leaked’ the trade data and even though the official data was in fact better than the leak, the AUD fell back as AUD/JPY longs unwound after the BOJ. Ranges: 1.0291/1.0356
EUR/USD again played second fiddle, moving with flows in the EUR/JPY and alongside general risk sentiment. Ranges: 1.3101/44
Cable 1.5892/1.5930; EUR/CHF 1.2014/24
