- BoJ policy board meeting starting today
- Japan’s June current account balance much less than expected at JPY1 trillion
- Australian job ads +1.3% MoM
- Australian owner-occupied housing finance -3.9% MoM
- China net buyer of JPY508 billion in Japanese Bills but net seller of JPY50 billion in longer term JGBs
- Japanese buying of US Treasuries increases
- More verbal intervention from Japanese FinMin Noda
- Nikkei falls 1% but other regional bourses rise slightly
- Major Australian parties neck-and-neck in election race
It has been another very quiet session here in Asia with many of the major pairings spending long periods of time almost motionless.
Cable tried once again to break above 1.6000 in early trade but failed and slipped back to its opening level around 1.5965. Ranges: 1.5957/97, EUR/GBP .8308/25
EUR/USD has had a miserly 20 pip range 1.3277/97 and can start the week again once Europe opens.
AUD/USD saw some moderate flows with decent buying reported from macro hedge funds but this was easily soaked up. Once again the 20 pip range tells the whole story; .9170/91.
USD/JPY was always going to be the likely source of volatility especially with its proximity to the increasingly pivotal 84.80/85.00 level but even that wasn’t enough to shake it out of a 20 pip sleep. Range: 85.31/51; EUR/JPY 113.31/62
Markets: Nikkei -1%, Shangahi +0.6%, HK and Seoul flat. Gold $1207/oz, Oil $81/bbl.
